Regional states differ over articles in draft monetary union protocol
Saturday November 16 2013
Minimum macroeconomic benchmarks for inclusion relating to inflation, public debt and foreign exchange reserves go missing in the East Africa Monetary Union protocol. TEA Graphic
EAMU Protocol is intended to pave the way for the transition to a single currency over the course of the next 10 years and then put in place legal, institutional and economic reforms to support financial integration across borders.
Experts fear that with similar loopholes as the Eurozone now introduced into the EAMU Protocol, the EAC’s monetary union could do more harm than good.
The dispute over the protocol has reignited fears of growing cracks within the bloc since the emergence of the Coalition of the Willing — Kenya, Uganda and Rwanda — which excludes Tanzania and Burundi.