Currency is also referred to as money in any form especially when in use or circulation as a means of exchange. Currency circulates mostly in the form of banknotes and coins within a nation for the purpose of trading. The highest currency in the world is Kuwaiti Dinar as against the US Dollar. Although Kuwait is small but it holds a significant position in the exportation of oil into the global market. However, as of August 2019, the highest currency in Africa is the Libyan Dinar (1USD-0.77LYD) which has been the most stable currency in Africa. Moreso, Libyan Dinar has a vast deposit of crude oil. With this, it accounts for 95% of the nation’s export earning in total while it also accounts for 60% of its GDP. According to thenationonlineng
The Currency Libyan Dinar is used by Libya and it was made famous by, Late Muammar Gaddafi a former leader. Its currency remained stable despite the effect of war and the nation’s standard of living is not very bad. However, our focus is on the EAC partners and states who have decided to establish an East African Monetary Institute (EAMI). This institute is aimed at enabling them to establish an East African Monetary Union. Yeah, you may ask to what essence do they want to establish EAC?
The essence of the East African Community (EAC) establishing a single currency.
This move from the EAC is really amazing because no two African countries use the same currency for trading. And now EAC has passed a bill that would enable them to establish an East African Monetary Union. Moreso, with this bill, passed the EAC are gradually drawing close to attaining their goal of a single currency. Although, this currency is just for the East African regions which they hope to accomplish come 2024.
Steps Taken By EAC And the impact OF Establishing A Single Currency.
Ambassador Liberat Mfumukeko who is the EAC Secretary-General and the Summit Head of State. He expressed his approval to the Bill for the establishment of the East African Monetary Institute (EAMI). The EAMI would later be transformed into the East African Central Bank, which would issue the single currency. Moreso, the EAC has developed requisite legal instruments (BILLS) for insurance and microfinance sub-sector. It has also developed strategies for implementing financial education and insurance certificate. According to kenyanwallstreet
Furthermore, according to the Ambassador, the Council of Ministers had also approved the Community’s Domestic Tax Harmonization Policy. This is a way of reducing tax competition and then enhancing cross-border trade and investment in the region. However, all these are only attainable when the Tax Harmonization policy is fully implemented. He also revealed that the Community that gets 20 million dollars, as support from the world bank would qualify to have a place in the EAC Investment Helpdesk. And such a community would also earn a Buyerseller Online Platform by June 2020, according to kenyanwallstreet.
Conclusion
The approval of EAC Single Currency Bill is depended on the approval of the Presidents of the countries involved. And it is their approval that would facilitate the harmonization of gathering economic data and its dissemination. There are six countries partnering in this, and they are Kenya, Tanzania, Uganda, SouthSudan, Rwanda, and Burundi. According to kenyans
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