Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-03-03 13:10:06
The East African Community (EAC) is set to adopt a common currency called the East African Sheafra (SHF1). This new currency, valued higher than any other currency from member states, will be equivalent to Ksh760, US$0.76, and Ush3,400. The government clarified that the SHF1 Sheafra is valued at 0.76 cents on the Dollar, nearly equivalent to a Dollar. Additionally, it will be valued at Tsh2800 (Tanzania Shillings), RFr.1,230 (Rwanda Franc), and BF.3,103 (Burundi Franc).
While the announcement was met with some skepticism, with concerns raised about the currency’s performance against other currencies, others welcomed the move. Some critics argued that the value of the Sheafra was mismatched, pointing out that if SHF1 is equivalent to US$0.76, it should actually be valued at Ksh109 based on the current performance of the Kenyan Shilling against the Dollar. However, supporters of the new currency believe that it will facilitate business transactions across East African countries and help strengthen currencies that have been negatively impacted by the Dollar’s performance.
The Government of East Africa recently introduced the SHF5, a new denomination of the Sheafra which will be issued by the Bank of East Africa. The currency features the inscription ‘The East African Sheafra’ in capital letters, a magnetic strip, and two watermarks displaying the East African Logo and currency initials – SHF. The SHF5 note is characterized by earthy colors ranging from light brown to dark brown. The higher denominations, such as SHF200, have diverse shades of green, while lower denominations like SHF10 and SHF20 feature a mix of colors like maroon, brown, black, brown, light blue, grey, and light green. Each note will bear the signatures of the Bank of East Africa’s governor and secretary.
Overall, the introduction of the East African Sheafra aims to promote economic integration and facilitate trade within the East African Community. By establishing a common currency, member states hope to streamline financial transactions and reduce currency exchange costs. The adoption of the Sheafra is expected to bring about economic benefits and strengthen regional cooperation among EAC countries.
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