News 

Monday, December 16, 2013 

Rwanda sees gains in single currency

KIGALI, Rwanda--The recent signing of the East African Monetary Union Protocol can form a basis for improved economic growth and macroeconomic stability in Rwanda.

During town hall’s meeting recently, Amb. Claver Gatete, the Minister of Finance said “EAC partner states will have to give their monetary and exchange rate policies to one selected authority which will lead to adoption of one single currency,” Gatete said.

He was referring to the proposed East African Monetary Institute which would later become the regional central bank. After 10 years the EAC is scheduled to use the same currency.

He said monetary union will expand markets, attract more investment, increase people’s incomes and eventually lead to middle income status.

Gatete briefed the audience on the transition stages involved and how Rwanda would benefit.

John Rwangombwa, the Governor National Bank of Rwanda said setting up the regional central bank will play a role of stabilizing prices. 

“This is going to help create a harmonized financial market which will be an accelerating engine to economic development,” Rwangombwa said.

All member states will be required to bring their inflation rate down to 8 per cent, have minimum reserves that will not be under 50%, have annual growth domestic product of 3 per cent, and also be able to contain their trade deficits. The plan of the EAC is to adopt such a single shilling by 2024.

By Agnes Bateta, Monday, December 16th, 2013