So the rumors are yet again true, that the West African Countries ( Benin Burkina Faso Cape Verde Ivory Coast Gambia Ghana Guinea Guinea-Bissau Liberia Mali Mauritania Niger Nigeria Saint Helena, Ascension and Tristan da Cunha (United Kingdom) Senegal Sierra Leone Togo)
Are planning to produce a single currency to boost the economy and commerce around its regions.
The four primary criteria to be achieved by each member country are: A single-digit inflation rate at the end of each year, a fiscal deficit of no more than 4% of the GDP, a central bank deficit-financing of no more than 10% of the previous year’s tax revenues and gross external reserves that can give import cover for a minimum of three months.
ECO is the proposed name for the common currency that the West African Monetary Zone (WAMZ) plans to introduce. The aim is to merge ECO with West African CFA France, which is used by French-speaking members of ECOWAS, and then ultimately create a common currency for West Africa.
But to implement the single currency, ECOWAS set some conditions (the convergence criteria). These conditions are, however, believed to be the main obstacle of the single currency programme. For instance, the first convergence criteria require all countries to achieve a single digit inflation of 5% or less. This is a difficult task for many of the countries involved.
Experts have, therefore, asked for a revision of the convergence criteria to enable them to be a reflection of the real macroeconomic situation in the sub-region. There are also concerns that a single currency programme will lead to loss of monetary sovereignty, and this is a move many politicians involved might not allow.
So Troops please tell me:
- what do you think about the currency name (ECO)?
- do you think it is achievable, despite corruption of rotten politicians?
- what do you think about the starting and ending figures (500-5000ECO) and its alliance with the Franc?