Talks on Single Currency among EAC states resume

[Mama Mdogo]

Kenya, Uganda, Tanzania, Burundi and Rwanda could soon have a common currency to make it easier to transact business within the region with the latest round of talks for its implementation scheduled to start Monday. The High Level Task Force (HLTF) is the body mandated to lead the negotiations which will be held in Arusha, Tanzania for six days starting Monday 23[SUP]rd[/SUP].

The attainment of the Monetary Union goal is the third phase of the EAC integration process that could see the region adopt a single currency. The HLTF is comprised of senior officials from the Partner States’ Ministries of Finance, Planning and Economic Development, East African Community Affairs, as well as Central Banks, Capital Markets Authorities, Insurance and Pensions Regulatory Agencies, and National Statistics Offices. “Specifically, articles to be debated include those legislating the funding and operations of the proposed East African Central Bank; harmonization of accounting and reporting standards; establishment of the proposed East African Monetary Institute; as well as the schedule and timetable for establishment of the Monetary Union,” reads a statement from EAC.

Source: Retirement Eligibility

 

[Mziba]

Kenya, Uganda, Tanzania, Burundi and Rwanda could soon have a common currency to make it easier to transact business within the region with the latest round of talks for its implementation scheduled to start Monday. The High Level Task Force (HLTF) is the body mandated to lead the negotiations which will be held in Arusha, Tanzania for six days starting Monday 23[SUP]rd[/SUP].

The attainment of the Monetary Union goal is the third phase of the EAC integration process that could see the region adopt a single currency. The HLTF is comprised of senior officials from the Partner States' Ministries of Finance, Planning and Economic Development, East African Community Affairs, as well as Central Banks, Capital Markets Authorities, Insurance and Pensions Regulatory Agencies, and National Statistics Offices. "Specifically, articles to be debated include those legislating the funding and operations of the proposed East African Central Bank; harmonization of accounting and reporting standards; establishment of the proposed East African Monetary Institute; as well as the schedule and timetable for establishment of the Monetary Union," reads a statement from EAC.

Source: Retirement Eligibility

Are the politicians ready to hand over their sovereignty to some financial institution? European Central Bank recently forced the Italian prime minister, the democratically elected official, to step down. Those who follow history may agree with me that, when a push comes to shove between Bankers and Bureaucrats, in most cases the Bunkers, always win. Now, just ask yourself this question, who is going to control the East African Central Bank. The idea of single currency has proved to be a time bomb in Europe twice. First in 1918 after the First World War and it is the center of the ongoing European financial crisis.
Just briefly, back in about 1878 The Austria Empire and the Kingdom of Hungary made, what was then known, as Austria Hungarian Empire. It included Hungary, Austria Germany, Czech, Slovakia, Holland, Romania and Italy. They decided to make a single currency.
However, after the War 1918, some countries in particular Austria find itself in a huge dept with a runaway inflation. Other member countries found it the single currency is not a good idea, so they killed it. But to kill a currency is not easy. It is easy to create one.
The second, single currency disaster is just going on right now in Europe; the news is all over the place, just Google "European financial crises". Again, the country Greece found out how hard it is to get out of the mess. It turned out UK was clever not to join the single currency parade.
If the European were struggling with drawbacks of single currency, where would East Africa be? That can be estimated, I hope HLTF considered the question.
HERE IS MAIN PROBLEM WITH SINGLE CURRENCY. You cannot have single central bank but no central government. They all have different tax policies, deferent debts, and different monetary policies. Just to mention a few. Teach me please, I want to learn more.