Mutebile decries delays in common currency achievement

Kampala, Uganda | THE INDEPENDENT | Bank of Uganda governor Emmanuel Tumusiime-Mutebile has decried the tardiness in hitting key targets to achieve a single currency for the East African Community bloc by 2024.

The East African Monetary Union Protocol, signed in 2013, set 2024 as the year to have all countries in the EAC using a single currency, and integrated payment systems. However, preparations, including setting up regional statistics body, the East African Financial Services Commission, and the East African Monetary Institute, have progressed rather slowly.

Mutebile, who spoke at the EAC governors’ meeting in Kigali Rwanda on Monday, told counterparts that “it is imperative that we assess the realism in the timelines embedded in the EAMU road map and do things right.”

Last year, the Council of Ministers adopted a bill to set up the East African Monetary Institute, which should have been up and running by 2015.

Mutebile said, however, that he was happy there was some progress made, including on formulating monetary policy frameworks, exchange rate policies, rules and practices governing bank supervision, financial accounting principles, payment systems and policies, and standards on statistics.

“A number of national laws are also being harmonized,” he said.

“I fully believe that there are huge pay-offs for our economies if we harmonize and integrate our monetary, financial and payments systems, even before we actualize a single currency system for the Community,” he said.

The Monetary Union is a key step towards full integration of the region.

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