According to reports, the East African Community (EAC) central banks are in a delay whether a single currency for the region will be out in 2024. The central banks says, one of the reasons why the single currency is unlikely to be introduced as planned; is that some member states have fallen short of the goals in the roadmap.
A report from East African members states that the currency is meant to help reduce the costs connected to the conversion of currencies. In addition, the hope is that exchange rates that come along with cross-border trading will be out of the picture.
Meanwhile, the EAC reportedly stated on August 22 that the regional block will not be able to adopt a single currency by 2024. The date initially anticipated. This is due to delays and other issues. The EAC communique says. “The Committee noted that there have been delays in realizing targets set out in the EAMU roadmap and that there are several challenges that could further impede the timely implementation of EAMU protocol. Therefore, the Committee pledged to work with the EAC Secretariat and other stakeholders in the EAC integration process to fast-track pending activities of the EAMU roadmap.”
Although East Africans claim that they have some obstacles in the way, causing a delay of the single regional currency. They still have achieved some progress. The achievements until now have been the creation of the East African Monetary Union. And the harmonization of forex and other monetary policies. In addition, the harmonization of regulatory regimes was complete, and certain application measures put more security on payment systems. Lastly, the improvements in cyber security frameworks were put into effect.
The article was originally published on CBC