• ECOWAS has reaffirmed its intention to launch the single currency by 2027, adopting criteria for candidate member states during its 66th ordinary session
• The ECOWAS Commission and WAMA have been tasked with implementing the reforms, while member states are to ensure financial contributions to support the ECO.
• The ECO aims to reduce trade costs, boost regional trade and boost economic growth, with experts suggesting gradual implementation alongside national currencies.

The Economic Community of West African States (ECOWAS) has renewed its efforts towards the implementation of the regional single currency, ECO, following key agreements reached during its 66th ordinary session has Abuja on Sunday.

The bloc, which includes 15 member states, reaffirmed its commitment to launching the currency by 2027 after delays caused by the COVID-19 pandemic.

In a communiqué issued at the end of the session, the Conference of Heads of State and Government adopted the criteria proposed by the High-Level Committee to select candidate Member States for the launch of the ECO.

Read also

Tinubu approves new conditions of service for military, details emerge

The committee stressed that the criteria would be incorporated into the protocol establishing the ECOWAS monetary union agreement, Vanguard reported.

To accelerate the process, the ECOWAS Commission, alongside the West African Monetary Agency (WAMA), was tasked with implementing the financial and institutional reforms necessary for the launch of the ECO.

“Member States and central banks must take immediate steps to ensure that their financial contributions are made towards the smooth establishment of institutions supporting the ECO,” the Authority said.

The High Level Committee was also invited to intensify its collaboration with the ECOWAS Commission to meet the deadlines for launching the single currency.

Main advantages of CEO

ECOWAS leaders highlighted two major benefits of the regional single currency:

1. Improved business efficiency

The adoption of a single currency is expected to reduce trade costs and boost intra-regional trade. Currently, trade within ECOWAS is hampered by the use of various national currencies which are not easily convertible within the region.

Read also

Cameroonian leader calls for “urgent action” on Central African economy

2. Economic prosperity

A unified currency could boost economic growth and improve the prosperity of member states, thereby promoting stronger economic integration in West Africa. Television reported.

While some experts believe that ECO will initially circulate alongside national currencies during the transition phase, others have suggested that the first stage of implementation could involve two ECO zones where national currencies are linked to ECO .

Source: Legit.ng