East African bloc developing institutions for implementation of single currency

NAIROBI, March 12 (Xinhua) -- The east African Community (EAC) is fast tracking the development of regional institutions that will support the implementation of a single currency, officials said on Tuesday.

Liberat Mfumukeko, secretary general of the east African Community (EAC) told a media briefing in Nairobi that the east African Legislation Assembly has already passed a bill to create the east Africa Monetary Institute as well as the east Africa Statistical Institute which are critical components of the EAC monetary union protocol.

"The region has shown political will to roll out a common currency so as to promote further economic integration," Mfumukeko said.

EAC member states includes Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan.

Mfumukeko noted that efforts are also proceeding with a view to harmonize both the fiscal and monetary policies across the economic bloc.

He revealed that a key priority is to develop a similar payment system across all central banks of the EAC partner states.

According to the EAC official, the goal of achieving a monetary union by end of 2023 is still in place.

He added that the trading bloc has already implemented a custom union with a common external tariff.

Mfumukeko observed that the common market protocol which allows for free movement of capital and labor is also at advanced stages of implementation.