Determining the Role of Single Currency for Countries Economic Development: A Case Study of the East African Community
There has been a need for the development of a unified currency since the restoration of the East African Community (EAC). This is due to the impact of multiple currencies in cross-border transactions, which has resulted in an increase in the value of products and services. Some countries in the European Union have these, too. While it may be ideal, determining the function of a single currency in boosting EAC economic development will require a thorough feasibility assessment. The single currency will be used to facilitate cross-border trade and payments, raise public awareness of the benefits of monetary integration, and promote EAC monetary policy cooperation. The research was focused on one question: what function does a single currency play in EAC economic development? The study was place in Arusha, the EAC’s headquarters. The majority of respondents are well-versed in the elements that lead EAC member countries to pursue the adoption of a single currency for economic development, according to the study’s findings. These aspects include, but are not limited to, improving currency stability, lowering financial risks, lowering transaction costs, lowering exchange rate fluctuations, improving price transparency, and lowering inflation, all of which have an impact on regional trade. According to the report, in order for effective integration to occur, different monetary union models must be investigated, the integration process must be designed, and a system for gradually implementing monetary integration must be put in place.
Author (S) Details
Pacific Internal University, Thailand.
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