Exchange rate volatility and its effect on intra-East Africa Community regional trade

East Africa Community exchange rate volatility spiraled up when the countries adopted Structural Adjustment Policies in early 1980s. The question that remains unanswered is whether hinders or promotes trade. objective of this study was to determine effect and its on Intra-East community regional Unit root tests results indicated some variables were stationary at levels first difference, all I(1). Differenced panel data fitted into General Autoregressive Conditional Heteroscedasticity model measure volatility. Hausman test showed fixed appropriate rate, money supply, population foreign direct investment significantly determines intra-East It concluded observable region further, population, influenced intra-EAC recommended EAC member states should formulate policies ensures stability reduce unpredictability rate. be enacted guarantee adequate supply encourage investments.