East African Community Monetary Union Halted

1-March-2012

With all the debate and bailouts currently taking place in the Euro zone simply because of the operating single currency in the region, I think the East African Community is wise to delay its Monetary Union.

Contrary to earlier plans, the East African Community will have to wait much longer to attain a single currency, according to Amb Richard Sezibera, the bloc’s secretary general.

Speaking on the sidelines of a conference (EAC after 10 Years) in Arusha, Tanzania, Amb Sezibera said EAC will this year only achieve the singing of the Monetary Union Protocol but not establishing a single currency.

The Monetary Union will enable the bloc establish channels through which a single currency can be formulated.

In 2007, EAC heads of states, instructed the East African Community Monetary Committee Affairs, headed by the five regional states central bank governors to fast truck the Monetary Union after which the region could attain a single currency.

However, Amb Sezibera said apart from the ongoing negotiations of the Monetary Union Protocol, not much has been discussed for the establishment of a single currency.
He said partner states are only preparing the region to harmonise its monetary systems and exchange policies, payment and settlement system, statistics and regionalisation so as to a harmonised single financial market.

By Martin Luther Oketch: The Monitor Newspaper

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