East African Central Bank Governors say they are committed to continue working together to achieve regional monetary union.
This is contained in the their communiqué issued on August25, 2017 after the 21st Ordinary Meeting of East African Community (EAC), Monetary Affairs Committee (MAC) that was convened at Serena Hotel, Kampala last Friday.
The meeting was chaired by Prof. Emmanuel Tumusiime-Mutebile, Governor Bank of Uganda and current Chairperson of MAC.
The meeting was attended by Benno Ndulu, Governor, the Bank of Tanzania, Dr. Patrick Njoroge, Governor, the Central Bank of Kenya, John Rwangombwa, Governor of the National Bank of Rwanda, Othom Rago Ajak, Governor of the Bank of South Sudan, Melchior Wagara, 1st Deputy Governor of Bank of the Republic of Burundi and Dr. Louis Kasekende, Deputy Governor, Bank of Uganda among other officials from EAC Secretariat, International Monetary Fund (IMF) and German Society for International Cooperation (GIZ).
The Governors noted that progress has been made on harmonization of monetary policy frameworks, macroeconomic statistics, monetary and exchange rate operations, rules and practices governing bank supervision and financial reporting, modernization and integration of payment systems and capacity building in preparation to the East African Monetary Union (EAMU).
They added that harmonization of East African Payment Systems will long a long away in promoting regional trade.
The Governors however noted that challenges of developing financial system to support price based monetary policy framework remains a big block to achieving EAMU.
“Quantitative easing, and its eventual reversal advanced economies cause uncertainty in the EAC Partners States’ financial markets and complicate monetary policy management,” the Governors said, adding that in spite of the challenges they will work together to achieve EAMU.
