Will a Single currency benefit East Africa?
The Kenya shilling: used by nearly 60 million people in the bloc Will a monetary union benefit the East Africa Common Market? Can it succeed? These are questions many “an expert and observer” have asked in the recent past. The economic conditions in East Africa , says critics, are not favourable for a Monetary Union come mid–next year. The experts do not foresee the bloc being ready for a monetary Union until after 2015. What are the problems cited: Weak domestic currencies, rising inflation, economic disparity within the member-states and among the states and general unpreparedness-whatever that means. The Tanzanian Currency: the third weakest currency in EA Just the same problems the pro- monetary union lobby says a single currency would solve. The single–currency school accuses the critics of “crying wolf.” Of creating mountains out of Mole hills.To be sure, the single -currency school avers, inflation in East Africa is high, ranging between 19.8 per cent per