ECOWAS speeds up process for single currency

Efforts on practical arrangements for the launch of the single currency, ECO, have been intensified by the Economic Community of West African States (ECOWAS).

A consensus on the currency was reached by ECOWAS at its 65th Ordinary Session as revealed in a communiqué issued at the end of the 66th ordinary session of the authority of the head of state and government meeting held in Abuja on Sunday.

The launch of the currency, which was delayed in 2020 due to the Coronavirus pandemic, has now been slated for 2027.

ECOWAS authority urged the central banks and member states to take the necessary measures for the payment of their financial contributions for the operationalisation of these institutions as soon as the decision on the effective date for the launch of the ECOWAS single currency is taken.

It also called for more efforts to ensure that the deadlines set for the establishment and operationalisation of the institutions needed to launch the ECO are met.

The ECOWAS currency is intended to lower trade costs and improve intraregional trade, which is currently hindered by the use of different national currencies that are not convertible within ECOWAS.

ECO is expected to boost economic prosperity of ECOWAS countries.

The national currencies of member countries and the common currency are expected to circulate side by side for a short period.

Suggestions have so been made for the first phase of implementation to involve two distinct ECO zones, where countries peg their national currency to the ECO.