EAC to decide details about launching regional central bank in 2023
East African Community (EAC) set to decide details about launching proposed regional central bank in 2023. When it would be launched and the proposed central bank’s location are the details to be decided. The establishment of the regional central bank is expected to assist the EAC in meeting its three-year aim of achieving a unified currency regime later in the year.
The establishment of the regional central bank is expected to provide critical assistance to the East African Community in achieving its goal of creating a single currency regime in three years. The plan to establish a regional central bank has been in the works for some time.
The financial institution East African Monetary Institute (EAMI) is considered vital to the implementation of a single currency according to a report. The EAC secretary general stated that the organization's council of ministers will discuss the location of the regional central bank. As a result, intra-regional trade is expected to rise high.
The EAC is made up of seven African countries. By 2024, the community hopes to have established a regional currency. There are also reports that community members are looking into other ways to launch a central bank digital currency as a viable replacement for the defunct East African Payment System (EAPS). In addition to its goal of easing and intensifying regional trade movement, the EAC leadership has deliberated on ways the organization can eliminate non-tariff barriers.
“The EAMI will be in place this year in what will allow us to harmonize member states’ fiscal and monetary policies, then in about three years we will have a common currency in place,” Peter Mathuki, the EAC secretary general said.
The single currency will facilitate trade and travel within the region, achieving the bloc's goal of becoming as envisioned in the Common Market Protocol.
The EAC has a population of 300 million people, and investors from all over the world stand to benefit from the market and, as a result, have access to the entire continent's population.
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