Eco Currency: West Africa Moves Closer to Monetary Union

The Economic Community of West African States (ECOWAS) is taking steps toward launching a single regional currency, the Eco, by 2027.  

This decision was reaffirmed on Monday in Abuja, where financial leaders gathered for the 11th ECOWAS Convergence Council meeting to discuss the progress and challenges of the much-anticipated currency project.  

The meeting brought together Finance Ministers and Central Bank Governors rom ECOWAS countries, all aiming to strengthen economic ties and improve financial stability across the region.  

Challenges and Economic Reforms

Chairing the session, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, discussed the obstacles slowing down the Eco’s implementation.  

“The biggest challenges are security threats, inflation, and global economic disruptions. These factors make monetary integration difficult,” Edun stated.  

He emphasized that economic discipline is key, stressing that ECOWAS member states must align their fiscal and monetary policies to meet the convergence criteria necessary for a unified currency.  

Despite these hurdles, Edun pointed to Nigeria’s economic reforms as a step in the right direction.  

“Nigeria has introduced major policies, including foreign exchange market reforms, tax policy adjustments, and fuel subsidy removal.. These measures have contributed to a GDP growth of 3.4% in 2024,” he explained.  

Beyond national policies, Edun stressed the importance of regional cooperation. He noted that ECOWAS is working closely with South Africa’s G20 presidency to align the region’s financial goals with broader African economic objectives.  

“This is our opportunity to shape the future of our region,” he said. “We must work together to drive economic stability, growth, and prosperity.”  

Benefits of the Eco Currency

The Eco is expected to boost trade among ECOWAS countries by simplifying cross-border transactions and creating a unified payment system.

Other benefits include:  

– Stable Prices: The currency will help control inflation and reduce price instability.  

– Foreign Investment: A single, strong currency will make West Africa more attractive to foreign investors.  

– Easier Business Operations: Companies will find it simpler to trade across borders without exchange rate complications.  

ECOWAS has been working on the single currency project for over two decades, but repeated delays have slowed progress.

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