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"EAC Common Currency" itaathiri vipi mishahara ya Wafanyakazi Tanzania?

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BAK, Jan 27, 2010.

  1. BAK

    BAK JF-Expert Member

    Jan 27, 2010
    Joined: Feb 11, 2007
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    Let common currency come `now` - Kamala

    By Edwin Agola
    27th January 2010

    Tanzania would like to see the adoption of a single currency for the five East African Community partner states fast-tracked, East African Co-operation minister Diodorous Kamala has declared.

    In remarks at the launch in Dar es Salaam yesterday of the ministry's website and Customer Care Contract, he appealed for concerted efforts from the EAC member states "to strive to achieve this third pillar of our regional co-operation earlier than scheduled".

    The minister said Tanzania was dying to see the common currency in use, adding: "Apparently, the EAC currency is to be introduced in 2012. But this is such an important pillar of regional integration that Tanzania is ready to adopt it, and the time is now and not tomorrow."

    Dr Kamala's remarks come in the wake of a submission by the European Central Bank at a recent consultative meeting in Kampala that the coming into force of an EAC monetary union, scheduled for 2012, will significantly reduce business transaction costs as there will be no more need for cross-conversions of national currencies.

    It is reported that Kenya and Uganda argue that the legal requirement of a full transfer of monetary sovereignty to the regional level could expose their respective financial sectors to external shocks.

    It is further reported that Kenya is reluctant to share detail information on its finances with other EAC partner states – Tanzania, Burundi, Rwanda and Uganda.

    Kenyan financial experts say an EAC secretariat demand that the confidentiality clause in the banking sector be lifted, to pave the way for the sharing of information on financial transactions among the partner states, could make commercial banks vulnerable to their competitors.

    "Establishing a monetary union in East Africa will be a difficult and risky task. It will require an enormous amount of work to reform institutions, change legislation and revise macroeconomic policies. It is a long term undertaking, whose benefits will be realized over many decades," read the European central bank findings in part.

    Reached for comment on the matter yesterday, renowned political analyst Prof Mwesiga Baregu said: "The birth of a regional monetary union cannot come easy; it requires much political will. The adoption of a common currency goes far beyond the need to adapt to a new single currency."

    The professor advised Tanzania to study the implications of transferring all their monetary powers to the regional level, "since after monetary union materialises, any problem would jeopardise the entire region".

    A senior economist with a Dar es Salaam-based commercial bank who preferred anonymity said in a telephone interview that he saw the East Africa region getting more appealing to local and foreign investors with the establishment of the envisaged monetary union.

    He said the signing of the EAC Common Market protocol last year was already attracting major investments, mainly from China, India and Japan to the region.

    "By eliminating the barriers that have been hindering intra-East Africa trade, we automatically expand businesses. Trade between and among the five EAC partner states has increased very significantly in recent months," he added.

    According to the economist, with tailor-made to improve communications and other infrastructure and lead to the adoption of a common currency, "we should expect goods and services to move even faster for the benefit of all parties concerned".

  2. K

    Kimweri JF-Expert Member

    Jan 27, 2010
    Joined: Apr 16, 2008
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    lini tutakuwa na originality kwenye mipango yetu?!YANI TUUNGANE KWA SABABU TUTAVUTIA WAWEKEZAJI?

    why take risky encounters wakati modest goals zimetushinda?we can hardly manage our own currency from looters why the hell would we want a joint currency now?

    i like the idea of unity but a union of 5 poor underdeveloped countries is just dumb.we are going to redistribute our poverty the cost to go back will be ranging from 20 to 30 years of lost time.

    how can we afford to go back 30 years?!or stop for 20 years?we are too poor to do that.just because EURO is a success it doesn't mean EA will be..,
    an investor who doesn't like TZ will bot prefer the new suit in disguise.Kama EPA inatuchukua miaka mitano ku-proccess,MIJIZI ya EA si itatuchukua robo karne japo kuijua tu?!