Skip to main content

ECOWAS Adopts ECO As A Single Currency


Countries within the West African sub-region will be able to use a single currency from January 2020

The currency which is called ECO was adopted by the Authority of ECOWAS Heads of State and Government on Saturday in Nigeria’s capital Abuja.

The West African leaders endorsed the currency at their 55th Ordinary Session and approved a road map towards the currency’s issuance in January 2020.

There roadmap is to ensure that all member countries meet three primary criteria for the adoption of the currency.

The criteria for adoption includes member countries having a budget deficit of not more than 3%; average annual inflation of less than 10% with a long-term goal of not more than 5% by 2019.


Member countries were also expected to have gross reserves that can finance at least three months of imports.

The other convergence criteria that have been adopted by ECOWAS are public debt or Gross Domestic Product of not more than 70%.

There is also the issue of central banks financing budget deficit not more than 10% of previous year’s tax revenue, and nominal exchange rate variation of plus or minus 10%.

A communiqué by Nigeria’s Permanent Secretary, Ministry of Foreign Affairs, Mustapha Suleiman said that the regional leaders instructed the ECOWAS Commission to work in collaboration with West African Monetary Agency.


The commission is also expected to work with West African Monetary Institute and all central banks to settle on a symbol for the single currency.

Meanwhile, the ECOWAS Chairman President Issoufou Mahamadou said that the revised roadmap does not affect the date for the issuance of the single currency in January 2020.

He said “We have not changed that but we will continue with assessment between now and then.

“We are of the view that countries that are ready will launch the single currency and countries that are not yet ready will join the programme as they comply with all six convergence criteria,” he added.

ECOWAS was set up in 1975 and has a combined population of 385 million.


It comprises Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.

Eight of these countries use one currency called the CFA franc. Those are Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo.

The decision to adopt one currency is similar to that of the European Union to adopt a single currency called Euro.
Labels:

Comments

Post a Comment

Popular posts from this blog

BREAKING: SENATE COMMENCES PROBE OF SENATOR ABBO FOR ASSULTING NURSING MOTHER

The Senate has begun probe into the case of Senator Elisha Abbo PDP, Adamawa North who allegedly slapped a nursing mother repeatedly at a sex toy shop in Abuja. Against this backdrop, the President of the Senate, Senator Ahmad Lawan has set up a seven- Member Ad-hoc Committee to investigate the matter and report back in two weeks. Presenting the Committee, Lawan promised that the Senate will be responsive and responsible, stressing that it will continue to remain the Senate of the people. The decision of the Senate to set Up the Committee was sequel to a motion by Senator Uba Sani, APC, Kaduna Central. The Committee is chaired by Senator Sam Egwu, PDP, Ebonyi North. Other members of the Committee are Senators Oluremi Tinubu, APC, Lagos Central; Matthew Urhoghide, PDP, Edo South; Stella Oduah, PDP, Anambra North; Danladi Sankara, APC,Jigawa North- West; Sani Musa, Niger and Daudu Haliru Jika, Bauchi Central. Senator Abbo, who defeated Senator Binta Garba, to emerge as the wi
Post a Comment
Read more

Rohr On Verge Of Sack As Super Eagles Coach

Rohr On Verge Of Sack As Super Eagles Coach The Nigeria Football Federation (NFF) will not renew Gernot Rohr’s contract as head coach of the Super Eagles, even if he wins the 2019 Africa Cup of Nations; this is authoritative. According to our sources, senior officials who matter at the decision-making echelon of the federation are not impressed by the Rohr’s rather uncommitted handling of the nation’s apex football team. The unimpressive outing of the German and his boys in the ongoing Africa Cup of Nations’ Competition (AFCON) has forced the federation officials to ask their lawyers to look at Rohr’s contract, as a first step to terminating his deal with Nigeria, immediately after the AFCON matches on July 19. “The NFF is not impressed with the way the team is playing after Rohr has been given all the support he required and were left unimpressed after he fuelled the match bonus crisis in the Eagles camp. “Since Nigeria qualified for AFCON, our attackers have been clay-foo
Post a Comment
Read more

PHOTO NEWS : Oyo Pensioners thank You Visit to Makinde

SEE PICTURES  Oyo Pensioners thank You Visit to Makinde              The Oyo State Governor, Engr. Seyi Makinde met with  pensioners  who came to show their appreciation to his administration for paying their pensions on time.   Makinde in his address to them said last Saturday he inform them,that  the government is not doing civil servants and pensioners a favour by paying their entitlements on time, as it is their right.  The Governor added that he promised to also make all outstanding backlog payments to pensioners over time.
Post a Comment
Read more