The East African Community (EAC) will decide when and where to establish the envisioned regional central bank during 2023, Peter Matuki of the regional intergovernmental organization reportedly said. The establishment of a regional central bank is expected to help the EAC achieve its goal of achieving a single currency regime within three years.
Location of Regional Central Bank
As the East African Community (EAC) moves toward its goal of a single currency regime, the regional intergovernmental organization will decide when and where to establish the regional central bank, planned for 2023, a senior official said.18} According to the report ,the financial institution, which will be known as the East African Monetary Institute (EAMI), is seen as an essential facility for the implementation of the single currency regime.
According to EAC Secretary General Peter Matuki, the organization’s Council of Ministers will deliberate on the location of the regional central bank.
“EAMI will harmonize the fiscal and monetary policies of member countries this year, followed by the introduction of a common currency in about three years,” Matuki said.
The introduction of a regional currency would bring the EAC closer to its goal of enhancing the mobility of businesses and people within the region. This, in turn, would ostensibly boost intra-regional trade, which was $10.17 billion by September 2022.
Elimination of non-tariff trade barriers
As previously reported by Bitcoin.com News, the EAC, which consists of seven African countries, hopes to introduce a single currency by 2024. The same report also revealed that member states were considering the possibility of a central bank digital currency replacing the ailing East African Payment System (EAPS).
Meanwhile, in addition to facilitating the movement of businesses and people within the region, the EAC leadership has also been discussing ways the organization can eliminate non-tariff trade barriers. As noted in the report, a total of 257 non-tariff trade barriers (NTBs) have been resolved since 2007.
Sign up for email here to get weekly Africa news sent to your inbox.
Image credits: Shutterstock, Pixabay, Wiki Commons