The East African Community (EAC) will decide during the course of 2023 when and where to locate the planned regional central bank, reportedly said Peter Mathuki of the regional intergovernmental organization. The creation of the regional central bank is expected to help the EAC achieve its goal of achieving a single currency regime in three years.
Location of the Regional Central Bank
As the East African Community (EAC) moves towards its goal of a single currency regime, a senior official said the regional intergovernmental organization would decide when and where to locate the planned regional central bank in 2023. According to a report, The financial institution, to be known as the East African Monetary Institute (EAMI), is seen as an establishment that is vital to implementing a single currency regime.
According to Peter Mathuki, EAC secretary general, the organization’s council of ministers is expected to deliberate on the location of the regional central bank.
“EAMI will be in force this year, allowing us to harmonize the fiscal and monetary policies of the member states, then, in about three years, we will have a common currency,” Mathuki said.
Once the regional currency is implemented, the EAC will move closer to its goal of improving the movement of businesses and people within the region. This, in turn, will significantly boost intraregional trade, which stood at USD 10.17 billion in September 2022.
Eliminate non-tariff trade barriers
As previously reported by Bitcoin.com News, the EAC, which consists of seven African countries, hopes to have a single currency by 2024. The same report also revealed that member states had explored the possibility of replacing a central bank digital currency. the moribund East African Payments System (EAPS).
Meanwhile, in addition to helping facilitate the movement of businesses and people within the region, EAC leadership has also held discussions about how the organization can remove non-tariff trade barriers. As noted in the report, a total of 257 non-tariff barriers (NTBs) have been resolved since 2007.
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