Common Monetary Agreement
A regional economic alliance of South Africa, Lesotho, and Swaziland under which member states apply uniform exchange control regulations to ensure monetary order in the region. Funds are freely transferable among the three countries, and Lesotho and Swaziland have free access to South African capital markets. Lesotho also uses the South African currency, the rand. The CMA was formed in 1986 as a result of the renegotiation of the Rand Monetary Agreement (RMA), which was originally formed in 1974 by the same member countries.