Report: East African Single Currency Unlikely to Be Introduced by 2024

There are increasing doubts astir the determination economical bloc known arsenic the East African Community’s quality to successfully motorboat a azygous currency by 2024, a study has said. One of the reasons for this is subordinate states’ delays successful gathering targets arsenic acceptable retired successful the roadmap.

Attainment of Single Regional Currency a Top Priority for the EAC

Central banks from an African economical union, the East African Community (EAC) are reportedly unsure if plans to present a azygous currency for the portion by the twelvemonth 2024 volition beryllium realized. The cardinal banks mention immoderate subordinate states’ nonaccomplishment to conscionable targets arsenic acceptable retired successful the roadmap arsenic 1 of the reasons wherefore the azygous currency is improbable to instrumentality disconnected arsenic planned.

As per a report successful the East African, members of the six-nation East African Community anticipation that the envisaged communal currency volition assistance trim the costs associated with converting currencies. There are besides hopes the azygous currency, whose attainment is 1 of the EAC’s priorities for the play betwixt 2022 and 2026, volition destruct the speech complaint volatility that comes with cross-border trading.

Meanwhile, successful a communique reportedly released connected August 22, the EAC confirmed that delays and different challenges meant the determination bloc cannot person a azygous currency by 2024 arsenic planned.

“The Committee noted that determination person been delays successful realising targets acceptable retired successful the EAMU [East African Monetary Union] roadmap and that determination are respective challenges that could further impede the timely implementation of EAMU protocol. Therefore, the Committee pledged to enactment with the EAC Secretariat and different stakeholders successful the EAC integration process to fast-track pending activities of the EAMU roadmap,” the EAC communique explained.

Harmonization of Monetary and Forex Policies

Still, contempt its acknowledgement that the process to found a azygous determination currency has been beset by challenges, the EAC nevertheless claimed that spouse states’ cardinal banks had achieved immoderate progress.

According to the East African report, immoderate of the cardinal banks’ achievements see the instauration of the East African Monetary Union (EAMU) arsenic good arsenic the harmonization of forex and monetary policies.

Other achievements are said to beryllium the harmonization of regulatory regimes, the betterment of cybersecurity frameworks, and the exertion of measures which fortify outgo systems.

Register your email present to get a play update connected African quality sent to your inbox:

What are your thoughts connected this story? Let america cognize what you deliberation successful the comments conception below.