Before East African community adopts a single currency, regional Economic experts want concrete means established indicating how the regions central bank will be funded.
The Experts also urged on clear policies on how accounting and reporting standards will be harmonised as the region plans to adopt a single currency.
Bank of Uganda governor emeritus Leo Kibirango was quoted by Newvision saying, “Until concrete means are found to provide central banks with clear and efficient ways to assess trends and developments in domestic and external economies, it may be challenging to proceed with the 2012 deadline .”
“The monetary union would render all players thinking East Africa and would restrict independent action in pursuit of national economic objectives,”he added.
He explained that there is risk that smaller states with marginal projects could be sidelined in preference for states with more robust proposals in the absence of clear policies.
State leaders in the East African Community (EAC) recently announced 2012 as the year of a common currency in Tanzania, Rwanda, Burundi, Kenya and Uganda, but central bank leaders in these countries may still lack the tools to implement the monetary union.
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