• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Wednesday, February 1, 2023
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
TFIGlobal
No Result
View All Result

Unified regional East African currency shows dollar the exit door

Michael Mahanta by Michael Mahanta
January 24, 2023
in Africa, Geopolitics
Reading Time: 3 mins read
0
Unified regional East African currency shows dollar the exit door
244
VIEWS
Share on FacebookShare on Twitter

Africa has been consistently making efforts to bring about a more united Africa for greater peace and prosperity. East Africa is at the forefront of this quest to create a united Africa. Its trade collaborations and cooperative economic initiatives are laudable.  Adding another feather to its cap, the East African bloc has taken a step forward, aiming for a unified regional East African currency that is likely to become a reality sooner than expected.

The East African Community (EAC) plans to have a unified regional currency in the following four years, as per a report. Furthermore, the East African Monetary Union is expected to be accomplished within the next four years, according to EAC Secretary-General Peter Mathuki, despite a technical working group’s recommendation that the timeframe is extended to 2031. Additionally, the council of ministers are expected to shortly announce the location wherein the East African Monetary Institute will be established. There have been reports stating that the East African Community is also sending a delegation to Somalia to evaluate the country’s inclination to join the fold.

Also Read

Africa is finally closing the ‘Income Gap’, between the rich and the poor

Ruto’s Strategic Diplomatic Endeavours Bring Him a Step Closer to IGAD Leadership.

( Source: The Star)

Why a Unified regional East African Currency?

Africa of late has been taking a few steps to boost intra-continental trade and remove trade barriers for greater economic development and cooperation. The African Continental Free Trade Area is one such example. Further many countries are also taking steps to remove trade barriers. For example, recently Kenya and South Africa have joined hands to resolve trade barriers and called for boosting trade and investments.

Read More: Africa sees a giant leap forward, as Kenya and South Africa join hands

In this regard, the call to channel a single unified currency will provide the required thrust to African countries in their quest to be independent players in the international system rather than leaning on the west.

( Source: Egypt today)

The single East African currency will ease business and movement of persons within the region and it is also in tandem with EAC’s intention to abolish all regional borders to allow unrestricted commerce and movement as envisioned under the standard market protocol.

Read More: Why source your currency from the West when you have options back home

Further, a single currency will help to counter monetary challenges like difficulty in converting some of its currencies while significantly increasing intra-African trade. Apart from the challenges, a single currency can also enhance currency stability and reduce financial risks, transaction costs, and inflation that impact inter-regional trade.

( Source: The Independent Uganda)

The reduced barriers to cross-border trade and investment will also contribute to greater competition in the economy as it will encourage more and more small as well as medium-sized companies to enter the markets of neighboring countries.

Alternative to Dollar

An increasingly strong dollar is wreaking havoc on the African economy and its currencies. It has amplified inflationary pressures across the continent. For example, the exchange rate between the US Dollar and the Egyptian pound has widened to 26.49. The rift between the US Dollar and Ghanaian Cedi has also sharply widened, as the exchange rate climbed from 6 to 14.5 over 2022.

To this point, the dollar’s growing heft causes tightening of trade and more stringent financing norms. Further, government debts would burgeon while debt-servicing would become tougher and tougher.

Read More: Egypt has joined BRICS’ de-dollarisation campaign

Considering that a significant number of countries are looking at alternatives to Dollar, a unified currency in Africa will boost its efforts towards de-dollarisation. Thus, Africa’s unified East African currency will add more fuel to the “Africa First” campaign thereby providing a much-needed impetus to Africa’s quest to formalize a stronger regional partnership to reap greater economic benefits, political stability, and progress.

Tags: AfCFTAEast African CommunityEgyptian PoundGhanaian CediUS Dollar
ShareTweetSend
Previous Post

EU-AU summit’s failure dampens western spirits

Next Post

NATO fears losing its existence, its desperation to stay afloat is apparent

Also Read

China comes up with a bizarre idea to overcome demographic challenges

China comes up with a bizarre idea to overcome demographic challenges

February 1, 2023
The next Ukrainian government will run in exile

The next Ukrainian government will run in exile

February 1, 2023
Wagner Group US

Desperate to save its face, US sanctions Wagner as a warning

February 1, 2023
Malawi: From being the “Warm heart of Africa” to being a “Cold Debt Ridden Country”, what went wrong?

Malawi: From being the “Warm heart of Africa” to being a “Cold Debt Ridden Country”, what went wrong?

January 31, 2023
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
World Economic Forum

“Sex, sleaze, and drugs” is what WEF is all about

January 18, 2023
Did Ukraine use innocent civilians as human shield against Russia in the name of evacuation?

Did Ukraine use innocent civilians as human shield against Russia in the name of evacuation?

May 9, 2022
France’s gift to Ukraine is actually a gift for Russia

France’s gift to Ukraine is actually a gift for Russia

January 28, 2023
Orwellian “Ministry of Truth” becomes a reality in Biden’s America

Orwellian “Ministry of Truth” becomes a reality in Biden’s America

April 28, 2022
Lavrov’s presence in Eritrea is very unsettling for…..

Lavrov’s presence in Eritrea is very unsettling for…..

January 29, 2023
China comes up with a bizarre idea to overcome demographic challenges

China comes up with a bizarre idea to overcome demographic challenges

February 1, 2023
Canada government

Freeland in trouble, as the government fails to keep up the $38 billion promise

February 1, 2023
The next Ukrainian government will run in exile

The next Ukrainian government will run in exile

February 1, 2023
US-Venezuela oil deal is a threat to Venezuela’s sovereignty

US-Venezuela oil deal is a threat to Venezuela’s sovereignty

February 1, 2023
Cholera

Cholera outbreak is set to worsen in the Dominican Republic

February 1, 2023
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2023 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

©2023 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.