The point that I want to emphasize is that, if we introduce a monetary union without first having put in place a genuine common market which can act as a shock absorber for idiosyncratic shocks hitting individual economies, we run the risk of exposing our economies to greater macroeconomic volatility.
The second prerequisite for a successful monetary union is sound fiscal policy, as is very clearly demonstrated by the problems currently afflicting some of the Euro zone members, notably Greece. The credibility of the monetary policy of the common central bank of the EAC will depend on it never having to finance the fiscal deficits of partner states.