The proposed implementation of a single currency regime by 2024 has been questioned by East African central banks, noting member countries’ failure to meet targets set out in the Monetary Union roadmap.
The single currency regime is projected to decrease currency exchange transaction costs and eliminate exchange rate fluctuation in cross-border business.
While great progress has been achieved toward the realisation of a monetary union, the East African Community Monetary Affairs Committee (MAC) acknowledged that there are still various hurdles that could obstruct the timely implementation of its protocol.
The Committee, chaired by Kenyan Central Bank governor Patrick Njoroge, singled out cross-border payment systems in a virtual meeting on March 4, noting that there is still more work to be made on this front.
“The Committee noted that there have been delays in realising 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,” according to a communique released on Monday.