Uganda welcomed a new law passed by the East African Legislative Assembly (EALA) to pave the way for the formation of a regional central bank and currency, a Ugandan member of the EALA said Thursday.
Last week, the EALA passed the East African Community (EAC) Monetary Institute Bill, 2017, which will allow the establishment of the East African Community Monetary Institute.
“The institute is a transitionary institution for the ultimate establishment of the East African Community Central Bank,” Grace Akol told Xinhua.
“Once established, this bank will set into action procedures for the harmonization of our different currencies into one single currency of the East African Community,” Akol said.
She said this will eliminate the hustle of currency exchange each time one moves from one EAC state to another and also foreign exchange (Forex) exchange costs.
Earlier, Tanzanian President John Magufuli said the time had come for the region to “think big and beyond parochial issues” and urged the regional Assembly to take a central role in ensuring the full integration and development of the EAC.
The EAC members are Tanzania, Kenya, Uganda, Rwanda, Burundi and South Sudan. Each of these countries has its own currency and central bank.