A Monetary Union will make this more efficient. Honorable members of Parliament, the gradual convergence of all the East African economies is critical while moving to a Monetary Union. Fiscal policy and fiscal rules are the most critical and crucial for economic convergence, and perhaps even more importantly, for  BIS Review 26/2010  2  the credibility and sustainability of the Monetary Union.
Monetary Policy will be driven by other decisions like exchange rate policy and reserves as well. One recent development, for example in Kenya is inflation measurement. Inflation will determine the direction of monetary policy in any country. But for EAC members, we have to compare ourselves when we use a common methodology.