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AFRICANGLOBE - Conventionally, businesses from the East African Community states involved in cross-border trade use the American Dollar as the medium of exchange. However, this is set to soon change following the operationalisation of an agreement between central banks of the EAC member states to promote trade using the various local currencies as opposed to the Dollar. This will see the gradual phasing out of the American currency as the common currency in cross-border trade in the region.
China and Japan have taken a decisive step to diversify their reserve holdings away from the dollar. African peoples have a lot of lessons to learn from both the capitalist crisis in Europe and this new financial arrangement.
Fresh produce exporters to European Union (EU) markets are counting gains as the stronger euro boosted their earnings after it hit record-highs against the shilling.
The expansion initiative is expected to involve 40 to 50 companies working on the design and construction of the network. It would also see more than 20 manufacturers producing spare parts and providing metal engineering and electro-mechanical services.