East Africa bloc signs deal to form single currency

The problems of the euro notwithstanding, the leaders of Kenya, Tanzania, Uganda, Rwanda and Burundi have signed a protocol to establish a monetary union within 10 years.

The countries, which make up the East African Community (EAC), have already established a common market and a single customs union. They now plan to harmonize their monetary and fiscal policies, and establish a common central bank.

The EAC hopes the currency union will boost trade and help them reduce their reliance on foreign aid, as well as attract foreign investment. The bloc has 135M people and major energy resources - Uganda and Kenya have discovered large amounts of oil while Tanzania has vast natural gas reserves. (PR)

Comments (12)
  • Kyle Spencer
    , contributor
    Comments (1244) | Send Message
    This is a very smart move on East Africa's part.
    1 Dec 2013, 06:16 AM Reply Like
  • snigdha.kolachala
    , contributor
    Comment (1) | Send Message
    Good news for Rwanda
    1 Dec 2013, 07:21 AM Reply Like
  • leopardtrader
    , contributor
    Comments (3804) | Send Message
    Good move here. In history economic union helped to reduce regional tensions and wars. Look at Europe today and look at their history before the European Community Union
    1 Dec 2013, 09:32 AM Reply Like
  • HCCBSanders
    , contributor
    Comment (1) | Send Message
    I appreciate your enthusiasm, but I don't think the EU is the best example. The pound and the United Kingdom that invaded three quarters of the planet is a better one. Lets just hope that they don't start doing nothing stupid like expanding it to the non-Swahili countries.
    1 Dec 2013, 02:00 PM Reply Like
  • Swisser998
    , contributor
    Comments (161) | Send Message
    Good move. It should increase Kenya's regional influence since they are the "Germany" of the East African economy, judging by GDP and inflation over the past decade.
    1 Dec 2013, 10:05 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11348) | Send Message
    Why not a bloc currency backed by a basket of gold, silver, platinum and petroleum?
    1 Dec 2013, 11:19 AM Reply Like
  • Ben Hanson
    , contributor
    Comments (525) | Send Message
    Because it isn't the 19th century.
    1 Dec 2013, 03:35 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11348) | Send Message
    What does that mean?


    I don't recall any country backing its currency with a basket of commodities in the 19th century.
    1 Dec 2013, 05:02 PM Reply Like
  • Mattster
    , contributor
    Comments (165) | Send Message
    How good and how pleasant it would be before God and man, yea-eah! -
    To see the unification of all Africans, yeah! -
    As it's been said a'ready, let it be done, yeah!
    We are the children of the Rastaman;
    We are the children of the Iyaman. - Bob Marley
    1 Dec 2013, 11:36 AM Reply Like
  • RM13
    , contributor
    Comments (1285) | Send Message
    It's a good move IF and only IF they set the union up in the right way. If they create a single currency without banking/trade unity, this is an experiment destined to fail.
    1 Dec 2013, 12:10 PM Reply Like
    , contributor
    Comments (58) | Send Message
    RM13 hits the nail on the head. They ought to imagine a huge depression and the subsequent drive to print East African dollars, and design the system to deal with it. I would suggest they examine other examples around the world (e.g. Singapore etc.) Interesting, stuff...
    1 Dec 2013, 05:49 PM Reply Like
  • Petrarch
    , contributor
    Comments (1169) | Send Message
    Good move and good luck to them.
    2 Dec 2013, 02:55 AM Reply Like
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