From CNBC Africa

The five-nation East African community recently signed an agreement to adopt a common currency in the near future.

The common currency  also plans to create a monetary union aimed at lowering transaction costs in the region by eliminating losses incurred in exchange rate.

“I think it actually moved forward on the front of the monetary union protocol. The effort towards a common market, and towards a reduction and elimination of tariff barriers, are really precursors to the monetary union,” United States’ Columbia University senior fellow Johnathan Berman told CNBC Africa.

“I think the aspiration will be that the move towards monetary union will accelerate those processes which have stalled over the last couple of years.”

A common currency is also expected to be a trade benefit for the five countries, and Berman explained that the most important of benefits would be in terms of intra-regional trade opportunities.

Written by Wilhelmina Maboja/Read more at CNBC Africa