Kenya Rwanda burundi Tanazani and Uganda agree to adopt one currency

[Xaaji Xunjuf]

East African countries agree to adopt common currency within 10 years

Burundi, Kenya, Rwanda, Tanzania and Uganda have agreed to set up a monetary union modeled after the eurozone.

 

kenya wildebeastENLARGE

Thousands of wildebeest wind through the Masai Mara National Reserve in Kenya, Aug. 3, 2002. More than a million wildebeest annually cross the border between Tanzania and Kenya. (Pedro Ugarte/Getty Images) (Pedro Ugarte/Getty Images)

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Five east African countries have taken the first steps towards establishing a common currency.

 

At a meeting in Kampala, Uganda, the presidents of Burundi, Kenya, Rwanda, Tanzania and Uganda said they would adopt a single currency within the next 10 years. The five countries are part of the East African Community (EAC) regional economic bloc, formed in 2000.

 

On Saturday, the countries agreed to set up a monetary union modeled after the eurozone and open a single customs union by 2014.

 

More from GlobalPost: East Africans step up plans for their own “euro”

 

The single currency is designed to attract investors by reducing transaction costs associated with changing money.

 

"In a monetary union, the absence of currency risk provides a greater incentive to trade," Kenneth Kitariko, chief executive officer at African Alliance Uganda, an investment advisory firm, told Reuters.

 

“The promise of economic development and prosperity hinges on our integration," Kenyan President Uhuru Kenyatta, the new chairman of the EAC, said. "Businesses will find more freedom to trade and invest more widely, and foreign investors will find additional, irresistible reasons to pitch tent in our region.”

 

It took the European Union seven years to introduce the euro after it announced it would adopt a single currency.

 

 

http://www.globalpost.com/dispatch/news/regions/africa/kenya/131130/east-african-countries-agree-adopt-common-currency-within-

[Guje]

shared currencies are a disaster, just look at the euro crisis.

[burahadeer]

It won't work with all that blackman's corruption,,imagine 3 presidents busy stealing from each otha, they might even go to war if one shortchanged.

[ole-maasai]

While. Somalis are busy with trivial clan and tribal divisions,the rest of the region is looking towards meaningfull relation through progressive institutional unity .

[Xaaji Xunjuf]

Guje;988733 wrote:

shared currencies are a disaster, just look at the euro crisis.

Not necessarily the Euro was not a bad initiative but allowing poor nations to join the EU was the one that caused the Crisis particularly Greece

If the East Africans make good monetary agreements they can make it happen

[Guje]

Xaaji Xunjuf;988746 wrote:

Not necessarily the Euro was not a bad initiative but allowing poor nations to join the EU was the one that caused the Crisis particularly Greece

If the East Africans make good monetary agreements they can make it happen

That is the conventional explanation. The fact of the matter is the euro really only suits Germany in the whole Eurozone. its basically a devalued Deutschmark, helping to boost german exports. The ECB acts as Germany's central bank and does what is best for the German economy not what is best collectively for all the countries, not even france the second largest economy has influence, never mind italy, france, the netherlands, etc. in summary europeans are dumb for having up their fiscal sovereignty so readily. they should learn a thing or two on statecraft from the masters --> the brits, who were always cool on this german hegemonic idea.

[Marksman]

Somalia should stay out. The Somali shilling’s advance has made it the best performer among 177 currencies tracked by Bloomberg this year. Source

[ElPunto]

This is a fantasy. You need to harmonize rules and regulations first before you can move to a common currency. The European Union was an integrated common market for some time before the euro was adopted.

[Kaluun]

It will not last because Bantus are too corrupted. The Kenyans will complain of Tanzanians, Tanzanians will complain of Burundians and the biggest victim of them all will be Rwanda and Uganda, the only two Bantus where corruption is not that spread.

 

I feel sorry for Rwanda and Uganda for opening their doors for the crooks. You wait and see.