A monetary Union is a group of two or more States sharing a Common currency and with common fiscal and monetary policies. An example of a Monetary Union is the European Union where several Countries use the Euro and monetary policies are conducted by the European Central Bank.
A monetary union can also be defined as two or more countries with a single currency, or different currencies having a fixed mutual exchange rate monitored and controlled by one central bank (or several central banks with closely coordinated monetary policies).
The East African Monetary Union (EAMU) Protocol was signed on 30th November 2013. It has since been ratified by all the Partner States. This will serve to transform the East African economy to operate with a common currency by 2024. This is to enhance the efficiency and performance of the Custom Union and the Common Market.