East African Central Bank set to develop payment systems

Jan 25, 2010

The East African Central Bank is expected to be established by the five member states that comprise the East African Community.

According to East African Business Week, the East African Central Bank will deal with monetary and exchange issues as part of a planned East Africa Monetary Institute. The institution will aim to develop payment systems and issue bank notes.

Following a study from the European Central Bank and East African Community regarding the proposed monetary union, the East African Central Bank will be tasked with implementing a single currency strategy.

Ban Hanspeter Scheller, the former director general of the European Central Bank, suggested that governments, businesses and citizens should be fully aware of the implications of the single monetary approach.

He is quoted by the publication as saying: "A single money market will require a regional payment system or the interlinking of existing national payment systems."

In other banking news from the continent, Ratio Magazine recently reported that the National Bank of Rwanda has agreed a deal with the International Finance Corporation to develop a local currency commercial loan swap market.