South Sudan may adopt a new currency by 2026
South Sudan and six other East Africa Community (EAC) member states could have a common currency by 2026.
The regional block also has plans to set up a common central bank by the end of the year.
EAC Secretary-General Dr Peter Mathuki said that plans are afoot to have the East African Monetary Institute – (the Central Bank of East Africa) in the next 12 months.
“The EAMI will be in place this year in what will allow us to harmonize member states’ fiscal and monetary policies, then in about three years we will have a common currency in place,” Muthuki told the theeastafrican.
He added that the Council of Ministers is expected to plan on the location of the EAMI.
The adoption of the common currency will come in handy for South Sudan, and the pound, especially – a currency that has lost almost half ts value in less than 10 months.
The pound is currently trading at 692 per dollar. In the same period last year, for example, the pound was selling at 350 per dollar.
The single currency will ease business and movement of persons within the region, which would achieve the bloc’s goal of becoming as envisioned in the Common Market Protocol.
The block has a combined population of slightly over 300 million people.
If implemented, the common currency will mark the third pillar of integration of the EAC after the establishment of the customs union and the common market protocol that deepened cooperation among the partner states, reported the theeastafrica.
Other EAC member states include Kenya, Uganda, Rwanda, Burundi, Tanzania and DR Congo.