Regional currency convertibility was one of the preconditions for the operationalisation of the EAPS launched in May 2014. TEA GRAPHIC | FILE
The use of the dollar in regional trade is expected to fall after the central banks of the five East Africa Community member states agreed on direct convertibility of national currencies, to protect them from weakening against the green buck.
The move will enable traders transact without having to convert national currencies into dollars first as the central banks seek to cushion businesses from foreign exchange shocks that accompany dollar movements.
