EA central bank governors meet
13 October 2011, 14:01
Nairobi – With the East African regional currencies under pressure against the dollar, the bloc has taken a coordinated approach to tackle the twin problem of double digit inflation and volatile foreign exchange markets.
In a statement to Capital Fm News, Central Bank of Kenya governor Njuguna Ndung’u said that he had met up with Prof Benno Ndulu (Bank of Tanzania), Prof Tumusiime Mutebile (Bank of Uganda) and Amb Claver Gatete (National Bank of Rwanda) in Nairobi to discuss how the current inflation and exchange rate is hampering East Africa’s economic growth.
Ndung’u attributed the weakening of the currencies may have resulted mainly from the widening of the current account deficit originating from rapid expansion of the oil import bill and imports for infrastructure development.
Despite the region’s currencies being in crisis, Rwanda’s inflation has been in single digit all year, and the world will be keen to see if this latest united attempt will yield favourable results.
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