As an avid follower of international events, I can’t help but notice the challenges caused by Greece’s financial malaise, especially in the European Union.
Many financial gurus believe that one of the reasons why Greece is in so much trouble is because it lost the ability to manipulate its currency. This is so because it lost that power when it joined the Euro.
When a nation cedes its ability to independently manipulate its currency through financial mechanisms, it becomes vulnerable.
In fact, it’s only the EU-IMF bailout that has arrested Greece’s financial implosion. But the 750 million Euro bail-out will affect every single aspect of Greek life like pension payments and public sector salaries.
The East African Community, which Rwanda joined, plans to become a political federation with a single currency and travel document.
I think that the single passport is a great idea but now that I’ve seen the Greek conundrum, I’m not such a fan of the single East African currency as I once was. I’m of the opinion that we should take a leaf from the United Kingdom.
It is an integral member of the European Union; however, it still uses the British Pound. I think that we should think long and hard before we cede monetary decisions away from the Central Bank and give them to Arusha. We can have our cake and eat it.