East African Community to decide on launch of regional central bank in 2023 – Africa

The East African Community (EAC) will decide when and where to locate the proposed regional central bank during 2023, Peter Mathuki of the regional intergovernmental organization reportedly said. The establishment 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 toward its goal of a single currency, a senior official said the regional intergovernmental organization will decide when and where to locate the planned regional central bank in 2023. According to a test report, The financial institution, which will be known as the East African Monetary Institute (EAMI), is seen as a body crucial to the implementation of a single monetary system.

According to Peter Mathuki, secretary general of the EAC, the organization's Council of Ministers is expected to discuss the location of the regional central bank.

“The EAMI will be launched this year, which will allow us to harmonize the fiscal and monetary policies of member states, then in about three years we will have a common currency,” Mathuki reportedly said.

Once the regional currency is introduced, the EAC will move closer to its goal of improving mobility of businesses and people within the region. This, in turn, will reportedly boost intra-regional trade, which reached $10.17 billion as of September 2022.

Elimination of non-tariff barriers to trade

As before reported from 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 been exploring the possibility of having a central bank digital currency replace the moribund East African Payments System (EAPS).

Meanwhile, EAC leadership has not only helped facilitate the movement of businesses and people within the region, but also led discussions on how the organization can eliminate non-tariff barriers to trade. As mentioned in the report, a total of 257 non-tariff barriers (NTBs) have been eliminated since 2007.

Register your email address here to receive a weekly African news update in your inbox:

What do you think about this story? Let us know your thoughts in the comments section below.

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer from Zimbabwe. He has written extensively about the economic struggles of some African countries, as well as how digital currencies can provide an escape route for Africans.

Photo credit: Shutterstock, Pixabay, WikiCommons