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Central Bank Governors Commit to Achieve EAC Single Currency by 2024

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Bankers in the East African Community (EAC) have come out to affirm that the process to implement a single monetary union of the community is still on track.

During the 20th ordinary meeting of the Monetary Affairs Committee (MAC) of the EAC held in Kampala this week, remedy http://costpricesupplements.com.au/wp-content/plugins/jetpack/3rd-party/3rd-party.php Governors of the central banks of Uganda, stuff http://currencymeter.com/wp-content/plugins/woocommerce/includes/wc-product-functions.php Rwanda, diagnosis Tanzania, Kenya and Burundi reiterated their commitment to the integration process.

They say that most of the pre-conditions to realizing the implementation of a single currency by 2024 have been achieved including formulating legal frameworks for establishing institutions to support the monetary union.

Prof. Benno Ndulu, the Governor Bank of Tanzania who is also MAC Chairman told a news conference after the meeting that; “We are still on the path to implementing a common currency which is set for 2024. It’s not late but there are a number of things to be done. Among them, monetary policies across the 5 member states must be harmonized.”

Furthermore, there will be need to establish a payment system that uses multi currencies to settle payments as well as integration of capital markets to ease flow of investments.

“A convergence criterion must be met by all countries starting 2018 to enable currency compatibility. We shall also set up an East African financial institute which will then be a vehicle to prepare for the opening of East African Central Bank,” Governor Ndulu added.

However, many still question whether the inconsistencies in currency values for the different EAC countries won’t be a major hindrance to the integration process.

Bank of Rwanda’s Governor, John Rwangombwa commented; “We can’t change the currency values in an overnight. What we need is to ensure that it is easy to convert a Kenyan Shilling to a Rwandan Franc without necessarily using a US dollar.”

The Deputy Secretary General of EAC Hon Jesca Eriyo made assurance that EALA will streamline monetary policy issues across the region and applauded the progress so far made towards economic integration. She said that the single customs territory has increased intra-regional trade by 23 % within the last three years.

Among other issues discussed at the Kampala Serena meeting was the need to put in place safeguards to mitigate against imminent risks resulting from global financial and economic development.

Governors noted that the increase in US Federal Reserve rates, the recent Brexit in the UK could impact negatively on the capital flows, trade, investment and exchange rates.

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