Kenya, Tanzania, Burundi, Rwanda and Uganda currencies. Mistakes and a bad experience with a single currency in the European Union have seen EAC take a cautious approach. FILE PHOTO | NMG
Midway through the 10-year period during which partner states of the East African Community are expected to have in place the required institutions and benchmarks leading to the creation of a single currency, the regional bloc concedes that progress has been slower than anticipated.
Partner states had agreed on four primary convergence criteria for at least three years before joining the bloc’s planned single currency in 2024: A ceiling on headline inflation of 8 per cent, reserve cover of 4.5 months of import, a ceiling on the overall deficit of 3 per cent of GDP, including grants, and a ceiling on gross public debt of 50 per cent of GPD in net present terms.
