EAC SECRETARIAT ISSUES WARNING OVER COUNTERFEIT COMMON CURRENCY
The EAC Secretariat wants to let everyone know that the partner states' transition to a single currency is still an ongoing process. Please disregard any rumors that are making the rounds on social media regarding the announcement of new banknotes for the area, the secretariat stated on X.
The announcement of a regional common currency on social media has been met with disbelief by the East African Community Secretariat.
The secretariat stated that work is still being done to introduce the new currency.
The EAC Secretariat wants to let everyone know that the partner states' transition to a single currency is still an ongoing process. Please disregard any rumors that are making the rounds on social media regarding the announcement of new banknotes for the area, the secretariat stated on X.
Public figure Larry Madowo said that a fraudulent Twitter (X) account introduced a phony new East African currency and received a gray government checkmark.
He declared, "The East African Community's real account now has to clean up a mess they didn't create."
Additional gold and gray checkmarks were introduced by Twitter and are utilized by government-affiliated accounts and Verified Organizations. According to Twitter, the purpose of the verification modifications is to "reduce fraudulent accounts and bots".
The official organization account through Verified Organizations is shown by the gold checkmark on the account.
An account that represents a government, a multilateral organization, or a government official is indicated by the grey checkmark.
As stated in the EAC Monetary Union Protocol, partner states of the EAC are harmonizing crucial policies and setting up the necessary institutions to achieve a common currency for the region by 2024.
The East African Central Bank, which would eventually issue a single currency, would eventually replace EAMI.
Reducing transaction costs, reducing the need for foreign reserves, eliminating exchange rate risk, and harmonizing prices across the territory are the main advantages of a monetary union.
The drawbacks of a monetary union, on the other hand, are associated with giving up control over exchange rates and monetary policy, particularly in the event of asymmetric shocks that render a single monetary policy unsuitable for each member nation.
The unilateral control over tools (monetary policy and exchange rate policy) that could be vital in handling macroeconomic shocks peculiar to a country is lost by members of a monetary union.
When it comes to keeping its purchasing power longer than the currencies it replaces, a new currency will be more appealing if it is more stable.
The monetary union's robust institutional framework, increased control over fiscal policy, and ability to shield the local central bank from pressure to supply monetary funding could all contribute to this.
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