IMF to support regional monetary union

KAMPALA - The International Monetary Fund (IMF) has agreed to provide necessary support to the East African Community in its efforts to establish a regional monetary union.
EAC Secretary General Juma Mwapachu (File Photo)
EAC Secretary General Juma Mwapachu (File Photo)

KAMPALA - The International Monetary Fund (IMF) has agreed to provide necessary support to the East African Community in its efforts to establish a regional monetary union.

A statement from the East African Community says John Wakeman-Linn, the IMF Senior Resident Representative in Tanzania, pledged IMF’s support while meeting the EAC Secretary General, Ambassador, Juma Mwapachu in Arusha.

Welcoming the pledge, Mwapachu said they would draw lessons from West Africa and the European Union, where the IMF played a pivotal role in the merger of these regions’ economies and the formation of Monetary Unions.

“We shall support any programme that is aimed at strengthening the regional integration process, and this is not a shift in policy of supporting national economies,” he said.

“It is because the IMF is now interested in supporting both regional and national programmes aimed at economic development”.

Mwapachu reiterated the need to support the EAC implement the recommendations made by the European Central Bank (ECB), in its report released early this year. The report details the viability of a monetary union in East Africa.

He said the IMF support would be required in setting up the legal and institutional framework and building of capacity for suitable staff among other areas.

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