The Central Bank Governors of East Africa have decided to extend the adoption of a single currency by 2031, as the initially proposed deadline of 2024 was deemed unfeasible.
At the 26th regular gathering of the Monetary Affairs Committee of the East African Community (EAC), which convened CBK governors from the member states, it was reported that advancements are being made to guarantee that the set deadline of 2031 for implementing a single currency is met.
The meeting, which was held in Burundi last week, recognized that the central banks of the partner states have made noteworthy progress in creating essential institutions for the East African Monetary Union (EAMU).
According to the committee, certain accomplishments have been made prior to the introduction of the shared currency.
These include the alignment of monetary and exchange rate policies, the harmonization of regulatory frameworks, the adoption of measures to reinforce regional payment systems, and the improvement of cybersecurity frameworks.
Notwithstanding the progress, the Committee noted the revised timelines set out in the EAMU roadmap, with the new date of achieving the monetary union by 2031. Therefore, the Committee reaffirmed their commitment to work together and with the EAC Secretariat to fast-track implementation of activities in the revised EAMU roadmap.
East African Community
As per the EAMU roadmap, the establishment of the monetary union requires the fulfilment of four major prerequisites, with the first one being the complete implementation of the customs unions and common market protocols. Presently, while significant progress has been made, both protocols are still in the process of being fully implemented.
Regarding cross-border payment systems, the Committee acknowledged the need for further work and agreed to persist in launching interoperability initiatives at the national level and improving the East African Payment System.
Implementing a single currency within the region would not only ease business operations but also facilitate the movement of persons, ultimately fulfilling the Common Market Protocol’s vision.
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