Write an illustrative essay that compares and contrasts the currency pegs of the SADAC, AEC and COMESA economic regions as far back in time as possible, and discuss how the exchange rate policies of...

COMPARISON AND CONTRAST OF THE CURRENCY PEGS OF SADAC, EAC AND COMESA
Table of Contents
Introduction    3
Comparing the Currency Pegs of SADAC, COMESA and EAC Economic Regions    3
Contrasting the Currency Pegs of SADAC, COMESA and EAC Economic Regions    5
Impact of Exchange Rate Policies of Dominant Economies in SADAC, COMESA and EAC on Cross-Border Trade    5
Conclusion    7
References    8
Introduction
Currency pegs is a method where the currency value or the exchange rate specified with respect to the foreign currency (Schmitt-Grohe & Uribe, 2016). The adoption of currency pegs is taken among the different economic regions as to make a bridge among the nations as that will help in cross border trade relationship among the nations and that will benefit many countries falling in those regions particularly the developing nations. The following project report is about the comparison and differences of three economic regions currency pegs, which are SADAC, COMESA and EAC. Further, the exchange rate policies are discussed among the economic nations.
Comparing the Currency Pegs of SADAC, COMESA and EAC Economic Regions
The currency pegs are formed as to have a common currency among different nations as that will help in bridging the relationship among the countries and that will enhance the trade and cross-cultural relationship among the nations. The three major regions that are chosen is SADAC, elaborated as South African Development Community, in which the member countries are Angola, Botswana, Democratic Republic of Congo, South Africa, Tanzania, Zimbabwe and many more countries (Munyoka & Maharaj, 2019).
The next region is COMESA, which elaborates for Common Market for Eastern and Southern Africa, in which the member countries are Angola, Sudan, Zambia, Zimbabwe and many more (Das et al. 2019).
Moreover, the last region is EAC, which is the East African Community an intergovernmental organization composed of six countries, which are in the region of African great lakes such as Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda. EAC is an integral part of the African Economic Community and the mission for whom it works is to provide community to widen and deepen economic, political, social and cultural integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investments. Bergin and Corsetti (2019) have identified certain advantages of currency pegs such as it helps in a planning on a stable basis among the countries that helps in doing business.
A credible and disciplined monetary policies are formed which helps the developing countries to outsource their money into developed nations as the money will be utilized in a more responsible way rather than losing on corruption as in Zimbabwe the hyperinflation had crashed their economic situation (Johnson, 2019). The third benefit that the currency pegs among the three economic regions will help in reducing the volatility rate and thus the developing nations will not have to face loss.
Contrasting the Currency Pegs of SADAC, COMESA and EAC Economic Regions
With many advantages, there are certain disadvantages or difference that can take place as in these three regions; there are many developed and developing nations. Alkhareif, Barnett and Qualls (2017) discussed that there will be a great influence and interference of the developed nations over the developing nation’s economy. The interest rates, the investments and all the financial decision will be taken by the developed nations. A floating currency system will automatically adjust the deficits and that means if one country imports too much then they have to payout a more. This will lead to decrease in the supply of currency that will lead to deflation. Hence, this automatic...