KAMPALA – Budadiri County East Member of Parliament Julius Muntu Nakiyi has called for the fast-tracking of the East African Monetary Union and the adoption of a single regional currency, saying the move would reduce transaction costs, facilitate cross-border trade and strengthen economic integration among East African Community member states.
Nakiyi made the remarks on Tuesday afternoon while contributing to a parliamentary debate on the Report on the East African Payment System, presented by Hon. Rebecca Kadaga.
The legislator argued that people and businesses were losing money through repeated currency conversions when conducting transactions across the region, particularly when transferring funds between East African countries.
In his submission, Nakiyi backed the position of the Shadow Minister, warning that currency fluctuations were imposing additional costs on individuals and businesses making cross-border payments.
He told Parliament that people were losing approximately three per cent of the value of their transfers due to exchange-rate movements, raising concerns about the financial burden placed on ordinary citizens and traders.
Nakiyi further observed that the existing currency conversion arrangements meant people could effectively incur multiple charges on a single transaction, questioning why citizens should continue paying extra costs when moving money within the region.
As a way forward, he urged the government and regional leaders to prioritise the implementation of the East African Monetary Union, saying a common currency would simplify financial transactions and make cross-border payments more affordable.
He cited the example of a person travelling to Dar es Salaam, Tanzania, who should be able to send money to Uganda as easily as making a domestic transfer, without facing the additional costs associated with currency exchange.
Nakiyi’s proposal comes amid ongoing regional efforts to strengthen financial integration and establish efficient cross-border payment systems within the East African Community. The EAC has continued working towards implementing its monetary union roadmap and improving regional payment infrastructure.
