Friday, August 14, 2020

Ghana to adopt ECOWAS single currency ECO

Must read

Guinea Bissau: 30 radio stations suspend broadcast

Thirty radio stations in Guinea Bissau have suspended broadcast over an attack on a radio station. The 24 hour radio blackout was in solidarity with...

Earthquakes hit Tanzania and Kenya

An earthquake with a magnitude of 6.0 has hit Tanzania in East Africa. The seismic waves of the earthquake were felt in parts of neighbouring Kenya. The tremors...

Meet 19-year old Ugandan vying to become president

A 19-year-old Ugandan, Hillary Humphrey Kaweesa is hoping to make history by unseating the incumbent President Yoweri Museveni in upcoming presidential elections. Kaweesa has picked...

The Bayern Munich star giving hope to kids in refugee camp in Ghana

Over a dozen young people are playing football on a small and dusty pitch in the Buduburam refugee camp in central Ghana. The pitch has...
Isaac Kaledzihttps://en.wikipedia.org/wiki/Isaac_Kaledzi
Isaac Kaledzi is an experienced and award winning journalist from Ghana. He has worked for several media brands both in Ghana and on the International scene. Isaac Kaledzi is currently serving as an African Correspondent for DW.
- Advertisement -

Ghana’s government has given the strongest indication ever that it would in 2020 adopt the new single currency to be used by ECOWAS member states.

Beginning in January 2020, countries within the West African sub-region will be able to use a single currency called ECO.

The currency was adopted by the Authority of ECOWAS Heads of State and Government in Nigeria’s capital Abuja in June 2019.

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

Strong will

- Advertisement -

Many have doubted if the ECO will really be adopted by member countries, but there seems to be willingness of many countries in West Africa to adopt the currency.

In December 2019 Ecowas said it was renaming the CFA franc into Eco.

Under the new deal struck between ECOWAS and France, this will also involve cutting off some of the financial links between Francophone West African countries and France.

“This is a historic day for West Africa,” Ivory Coast’s President Alassane Ouattara said during a news conference with French President Emmanuel Macron in the country’s main city Abidjan.

- Advertisement -

Ghana’s government in a statement said it was “determined to do whatsoever we can to enable us join member states of UEMOA, soon, in the use of ECO.”

“Ghana urges the other Member States of ECOWAS to work rapidly towards implementing the decisions of the Authorities of ECOWAS, including adopting a flexible exchange rate regime, instituting a federal system for the ECOWAS Central Bank, and other related agreed convergence criteria, to ensure that we achieve the single currency objectives of ECOWAS, as soon as possible, for all Member States,” the statement added.

Criteria for Eco adoption

That includes member countries having a budget deficit of not more than 3 percent; average annual inflation of less than 10 percent with a long-term goal of not more than 5 percent by 2019.

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

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

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

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

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 current decision to adopt one currency is similar to the move made by the European Union to adopt the single currency called Euro.

 

 

Source: Africafeeds.com

- Advertisement -

More articles

- Advertisement -

Latest article

Guinea Bissau: 30 radio stations suspend broadcast

Thirty radio stations in Guinea Bissau have suspended broadcast over an attack on a radio station. The 24 hour radio blackout was in solidarity with...

Earthquakes hit Tanzania and Kenya

An earthquake with a magnitude of 6.0 has hit Tanzania in East Africa. The seismic waves of the earthquake were felt in parts of neighbouring Kenya. The tremors...

Meet 19-year old Ugandan vying to become president

A 19-year-old Ugandan, Hillary Humphrey Kaweesa is hoping to make history by unseating the incumbent President Yoweri Museveni in upcoming presidential elections. Kaweesa has picked...

The Bayern Munich star giving hope to kids in refugee camp in Ghana

Over a dozen young people are playing football on a small and dusty pitch in the Buduburam refugee camp in central Ghana. The pitch has...

WHO wants to review Russia’s vaccine clinical trials

The World Health Organisation (WHO) said on Wednesday it was looking forward to reviewing clinical trials of a potential coronavirus vaccine developed in Russia. President Vladimir...