The Role of Single currency for Countries Economic Development: a Case Study of the East African Community

Abstract

Ever since the re-introduction of the Eastern Africa Community (EAC), there has been a clamor for the introduction of a single currency. This is because the effect of multiple currencies in cross-border transaction has led to the increase of the value of goods and services. Just like some countries within the European Union have some. In as much as it may be the ideal, there is a need to make a critical feasibility study so as to determine the role of single currency to drive economic development of EAC. Single currency will serve as means of payment for cross border trade and payments, familiarize the public with the benefits of monetary integration, and would encourage coordination of EAC monetary policies. The study was centered around one research question; what is the role of single currency for economic development in EAC? The study was based in Arusha city the headquarter of EAC. The study revealed that majority of respondents have high knowledge of the factors that encourage the EAC member countries to seek for the adoption for single currency for economic development These factors include and not exhaustive: enhancing currency stability, reduction of financial risks, reduction of transaction cost, reduction of exchange rate fluctuation, enhancing price transparency and reduction of inflation that impact on trade within the region. The study shows that for the effective integration to take place: there is a need to explore several monetary union models, make a design of the integration process, and put into place a mechanism of implementing the monetary integration in a gradual manner.

Authors and Affiliations

Paluku Kazimoto

Keywords

Related Articles

Determinants of Employee Engagement in Hotel Industry in Malaysia. A Theoretical Model

The purpose of this paper is to examine the factors that influence the employee engagement in hotel industry in Malaysia. Four independent variables have been identified as the factors that are going to be tested in this...

A Study on evaluation of Human Resource Practices in Hotel Industry with special reference to selected Hotels in Chennai City

In hotel industry, the perceptions about human resource practices are generally negative. Whatever may be the reason for poor practices, human resource management strategies impact on an organisation’s overall effectiven...

Do Listed Companies Need an IFRS Committee Beside Audit Committee?

The aim of the study is to identify the necessity of forming an international accounting standards committee from the board of director and to investigate its role in reinforcing corporate governance pillars and the inte...

The Effect of Ownership Structure and Corporate Governance on Capital Structure of Ghanaian Listed Manufacturing Companies

The study explores the relationship between ownership structure and corporate governance on capital structure of some listed manufacturing companies in Ghana Stock Exchange. This study was motivated by the fact that alth...

Download PDF file
  • EP ID EP126442
  • DOI 10.6007/IJARAFMS/v4-i2/833
  • Views 334
  • Downloads 0

How To Cite

Paluku Kazimoto (2014). The Role of Single currency for Countries Economic Development: a Case Study of the East African Community. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(2), 136-143. https://europub.co.uk./articles/-A-126442