{UAH} Central Bank chiefs pave way for East African dollar

East African Community partner states have reduced the stock of foreign exchange that central banks need to keep in a countdown to the ambitious launch of the East African dollar in less than a decade.

EAC central bank governors agreed during their Sectoral Council meeting in Nairobi two weeks ago that each country should all the time have enough dollars to buy 4.5 months' worth of imports, yielding to pressure from Kenya, which felt the initial proposal of six months would hurt economies seeking to promote exports.

The money men have been searching for consensus on the qualifying criteria for the Monetary Union, which will culminate in the launch of a single currency.

Questions on the independence of central banks also hampered the ratification of the EAMU Protocol by some members, but the governors have now agreed that the monetary authorities will retain the national policy-making role.

http://www.theeastafrican.co.ke/news/-/2558/2523804/-/52ctvfz/-/index.html

Brian M. Kwesiga

President and CEO,

Ugandan North American Association - UNAA

972.415.6372 | www.unaa.org | "United We Stand"