Writes Leo Odera Omolo
REPRESENTATIVES of governments and stakeholders drawn from the financial five member states of the east African Community {EAC} financial sector are in attendance of the crucial meeting to review developments in the region’s financial markets as the deadline nears for the much awaited region’s’ single currency.
The meeting is taking pace at the EAC Secretariat, which is located in the Northern Tanzania City of Arusha.
It is discussing among other things the launching of the single currency, which is expected to in place by June this year.
“The participants discussed issues relate to the sustaining of the economic growth in the region, developments in the euro zone and lessons for the EAC as it negotiates protocol for a monetary union.”
A state issued by the EAC secretariat further disclosed that the meeting being held jointly with the International Monetary Fund {IMF}.
EAC countries are Kenya, Tanzania, Uganda, Rwanda and Burundi. The five states have been discussing a single currency plan covering monetary policy harmonization and financial sector integration.
However, Rwanda is said to have indicted that t might not be part of the region’s single currency plan.
A senior Tanzanian government official recently hinted that the deadline for the East African countries to adopt a monetary union set for this year, might be extended, signaling the partner states unwillingness to embrace the monetary union in earnest
A senior Tanzanian official told one of the country’sdaily this week that sticking issues such as budgets, inflation rate, foreign exchange reserves, government debts and exchange rates among member countries must be observed before they commit to a single currency arrangement.
Dr Stergomena Tax Bamwenda, the Permanent Secretary in the Tanzanian Ministry of the East African Cooperation noted that the ongoing negotiations on the monetary union would consider all the factors, and if not met, the countries will not embrace a single currency this year as planned.
“We are still I the process. We can’t rush to introduce monetary union until those criterion are met, even as the deadline approaches, we will not rush,” she insisted.
Dr Bamwenda said EAC was also learning from other regional blocs like the euro zone on intricacies of the monetary union before ratifying the agreement.
The two days Arusha meeting comes amid growing regional trade crisis. Most of the region’s border posts are experiencing cargo backlogs, amid graft allegations.
The EAC Secretary General Dr Richard Sezibera says the Arusha conference would offer a unique opportunity to discuss how best the region should work to achieve vision of promoting a secure, competitive and prosperous East Africa.
The conference ends today was held under the theme,” The East African Community after 10 years; Deepening EAC Integration” also offer a platform to about 100 regional and international experts and policy makers to discuss EAC accomplishments since the year 2001.
Peaking at another forum late last year Dr.Sezibera expressed confidence that the EAC would introduce a single currency by Jun this year, making it the second regional bloc to adopt single currency after the European Union.
The bloc, Dr Sezibera said was halfway through the negotiation process, adding that the high level task force was doing all it could to accelerate the adoption of a monetary union.
Ends