The Economic Community of West African States (ECOWAS) is re-evaluating its single currency project, the ECO, after years of difficulties in bringing the plan to fruition.
Sen. Edwin Melvin Snowe Junior, Co-chair of the ECOWAS joint committees on Social Affairs, Gender and Women Empowerment, Legal Affairs and Human Rights, and other sectors, revealed this development during a recent interview in Banjul, Gambia.
The ECO initiative, first proposed in the late 1990s and gaining momentum with the establishment of the West African Monetary Zone (WAMZ) in 2000, was intended to bolster economic growth and integration among the 15 ECOWAS member states. The currency was designed to streamline transactions, minimize exchange hassles, and foster regional prosperity.
Despite these goals, the project has faced significant political hurdles, jeopardizing its progress. Snowe Junior attributed these challenges to political complexities and differing financial systems between Anglophone and Francophone countries.
He explained, "The single currency is a work in progress with considerable political implications. The integration of various currencies, particularly the French CFA and the BCEAO bank, adds layers of complexity. Recent political instability and coups in the region have further complicated the situation."
In response, ECOWAS is now considering a revised approach: introducing separate currencies for Anglophone and Francophone countries. Snowe Junior proposed that the five English-speaking nations—Nigeria, Ghana, Liberia, Gambia, and Sierra Leone—could adopt a common currency initially, while Francophone countries could adopt a different one. Over time, these two currencies could potentially merge into a single regional currency.
Snowe Junior emphasized that political instability has delayed the implementation of this dual-currency plan but assured that ECOWAS remains committed to revisiting and advancing the currency integration process as circumstances permit.
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