Korede Abdullah in Lagos
The Economic Community of West African States (ECOWAS) has intensified efforts to launch its single currency, the ECO, after reaching a consensus on implementing directives from its 65th Ordinary Session.
A communiqué issued at the end of the 66th ordinary session of the authority of the head of state and government meeting in Abuja revealed the progress.
The ECOWAS bloc of 15 countries initially planned to launch the ECO in 2020 but faced delays due to the coronavirus pandemic.
To move forward, the Authority adopted criteria proposed by the High-Level Committee for selecting member states to launch the ECO or join later.
The Commission, in collaboration with the West African Monetary Agency (WAMA), will incorporate these criteria into the ECOWAS Monetary Union Agreement protocol.
The Authority endorsed proposals on financing reforms and institutions needed to launch the ECO, urging central banks and member states to pay their financial contributions.
The Heads of State also directed the High-Level Committee to ensure deadlines are met for establishing and operationalizing institutions needed for the ECO launch.
A single ECO currency could lower trade costs, improve intraregional trade, and boost economic prosperity for ECOWAS countries.
The transition may involve a short period where national currencies and the ECO circulate together, with some suggesting two distinct ECO zones where countries peg their currencies to the ECO.
