EAC to Decide Location for Regional Central Bank in 2023

• The East African Community (EAC) will decide when and where it will locate the regional central bank in 2023.
• The regional central bank, known as the East African Monetary Institute (EAMI), is seen as an establishment that is pivotal to implementing a single currency regime.
• Once the regional currency is implemented, the EAC will move closer to its objective of enhanced movement of businesses and persons within the region, and ultimately boost intra-regional trade.

The East African Community (EAC) is moving closer to its goal of attaining a single currency regime in three years, with the decision of when and where it will locate the envisioned regional central bank expected to be made during the course of 2023. This financial institution, known as the East African Monetary Institute (EAMI), is seen as an establishment that is pivotal to implementing a single currency regime.

The East African Community (EAC) is an intergovernmental organization made up of seven African countries, which are Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan and Ethiopia. The organization seeks to develop and expand trade and economic cooperation between the member states, and has been working towards the goal of attaining a single currency regime.

In this regard, Peter Mathuki, the EAC Secretary General, recently stated that the organization’s Council of Ministers is expected to deliberate on the location of the regional central bank this year. He further noted that with the EAMI in place, the organization is likely to harmonize member states’ fiscal and monetary policies in three years, when the common currency is expected to be in place.

Once the regional currency is implemented, the EAC will move closer to its objective of enhanced movement of businesses and persons within the region. This, in turn, will ultimately boost intra-regional trade, which stood at $10.17 billion by September 2022. The organization is also working on eliminating non-tariff trade barriers to ensure the success of the single currency regime.

The East African Community is acutely aware of the fact that the single currency regime is a major milestone for the organization. With the establishment of the regional central bank, it is expected to bring member states closer together, and create a level playing field for businesses and individuals within the region. This is expected to result in improved economic growth and development, as well as increased job creation and poverty reduction.

The EAC is optimistic that its plan to have a single currency regime in place in three years will be a success. The establishment of the regional central bank is seen as a crucial step towards achieving this goal, and the organization is expected to make a decision on its location in 2023. Once the regional currency is implemented, the EAC will move closer to its objective of enhanced movement of businesses and persons within the region, and ultimately boost intra-regional trade.