Single EAC currency expected in 2009 (11/01/07)

 

The East African member countries will operate under one currency in three years' time.

 
 
East African Community Minister, Mr John Koech, said the community's committee on fiscal and monetary affairs is working on a roadmap to have one currency for East Africa by December 2009.

Koech said partner states have agreed on methods to integrate the three economies to pave way for a sustainable monetary union.

Already, a comprehensive study on the EAC common market has been commissioned by the EAC secretariat.

"The study will among others specify the scope of the protocol, identify key areas for negotiations," said Koech.

In addition, it will also indicate the necessary institutions that may be set up to support the common market and propose a model procedure to form the basis for negotiations.

He said discussions and consultations on the EAC common market have been launched and a task force has been set in the partner states to start negotiations.

Once the common market is in place, there will be free movement of persons, labour, services, and right of establishment and residence.

Koech was speaking at a breakfast meeting with media owners and journalists on efforts to sensitise Kenyans on fast tracking of East African political federation.

According to the treaty for the establishment of the EAC, the roadmap towards full integration begins with the customs union, common market, monetary union and ultimately political federation

The EAC customs union protocol was signed on March 2, 2004 and launched on January 1 the following year.

"Currently, implementation of the protocol is ongoing," he said.

Founded in January 2001, the East African trading bloc members have been Kenya, Uganda and Tanzania until recently when Rwanda and Burundi joined, a development hailed by politicians and the business class. The current EAC revived the original idea which collapsed in 1977.

Source: All Africa

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