ABUJA - The single currency of ECOWAS will ultimately not be born in the near future. After some strong tensions observed on the issue, the States ended up delaying the launch of the ECO and agreeing on a gradual approach based on a new roadmap.
The single currency of ECOWAS, the ECO, will not finally see the light of day in 2020, or at least in the near future. The 57th summit of the Conference of Heads of State and Government of the institution held on September 7 in Niamey clarified the situation concerning the timetable for the adoption of this common currency.
Indeed, the announcement made by the UEMOA zone to unilaterally adopt the CEE to replace the CFA franc currently used by the 8 member countries of this space in 2020 had created tensions with the member states of the WAMZ, with in mind Nigeria. Without forgetting that the covid-19 crisis went through this with its economic consequences.
Noting that "the reform of the UMOA monetary zone is part of the actions to be carried out to transform the FCFA, as well as other currencies into ECO, in accordance with the revised roadmap of ECOWAS" , the summit decided to "postpone, to a later date, the launch of the single currency" .
This decision was taken after presentations by the Ivorian President, Alassane Ouattara, current President of the WAEMU, and the Minister of Foreign Affairs of Sierra Leone, Nabeela Tunis, representing Julius Maada Bio, current President of the WAMZ. .
In addition, the Heads of State underlined "their determination to respect the convergence criteria before the creation of the single currency" . A relatively wise decision, especially since according to the most recent studies on the issue, only Togo met these criteria. Their respect is also the position defended since then by the WAMZ.
Also, faced with the economic and financial difficulties created by the covid-19 pandemic, it was decided to exempt Member States from respecting the macroeconomic convergence criteria in 2020.
While maintaining the "gradual approach to launching the ECO" , ECOWAS member states have therefore agreed to develop a new roadmap for the single currency program. In this sense, a new pact of convergence and macroeconomic stability will be concluded between the States.
The Niamey summit thus puts an end to the debate concerning a separate adoption of the ECO by the member states. So as to allay the tensions clearly visible since the warning shot given by the president of Nigeria, the heavyweight of the sub-region, against the urge of the WAEMU countries to unilaterally adopt the new currency.
An action through which many observers saw more an attempt to "make up" the FCFA strongly criticized by the public, than a desire to truly adopt a new currency independently and autonomously.
