Regional ministers to harmonize EAC currency

Ministers of finance and economic planning together with ministers responsible for the coordination of EAC from the five member countries of the bloc, met in Kigali last week for talks on a single currency.They worked upon modalities of the EAC monetary union which is the third stage of integration in the EAC.The Common currency is the third stage of integration for the countries in the bloc after both the customs union and the common market. It is envisaged that a stable monetary union would reduce the costs of doing business across borders within the EAC, thereby deepening trade links and promoting growth. There is also an expectation that a common currency will encourage investment in the region.With a common currency and a common monetary policy, free movement of goods, services, and people across the five borders, the EAC monetary union will look like the European Monetary Union.The Minister of Finance and Economic Planning in Uganda who is also the current chairperson of the East Africa Council of Ministers responsible for finance and economics, Maria Kiwanuka, revealed that the protocol on EAC monetary union will be finalized in November this year.After the protocol is signed by heads of states, partner states of the bloc will start reconciling their databases and foreign exchange protocols as well as harmonizing external taxes.It is expected that the single currency will be in place after three years, meaning the end of 2016 from this year.