The Common Monetary Area (CMA) links South Africa, Lesotho and Swaziland into a currency union. It is allied to the Southern African Customs Union (SACU). Namibia automatically became a member upon independence, but withdrew with the introduction of the Namibian dollar in 1993. Namibia has chosen not to pursue its own flexible exchange rate policy, and the Namibian dollar is at par with the South African rand and there is no immediate prospect of change. The same is true with the lilangeni of Swaziland and the loti of Lesotho. The rand continues to circulate freely in these countries. Foreign exchange regulations and monetary policy throughout the CMA continue to reflect the influence of the South African Reserve Bank. Of the SACU members only Botswana is currently out of the CMA.
