West African Eco May Be Delayed By Four Years, Says Ivorian President

The monetary integration of West Africa through a regional currency, the ECO, may be postponed until 2024 due to the impact of Covid- 19 on the region.

The President of Cote d’Ivoire and Chairperson of  the West African Economic and Monetary Union, Alassane Ouattara, said this on Saturday during a briefing. 

The French- speaking countries of the ECOWAS had cut its link with Banque de France on  a 70- year common currency held by the bloc.

ECOWAS new Chair of Authority of Head of States and Government, Nana Addo Akufo-Addo, had during the 57th Summit of ECOWAS in Abuja said the ECO has been affected by the impact of the pandemic on member states.

Ouattara said, “We know that the ECO cannot be put in place this year because of Covid and the difficulties we have in the different states.

“We think it will be difficult to get back into the three per cent deficit for two or three years. So personally I don’t see the Eco arriving before three to four years.”
 

The countries in the West African region may see their budget deficit rise to eight per cent of their Gross Domestic Product owing to the pandemic.

The regional body said the deficit is against  the three per cent convergence criteria agreed before the ECO is introduced.

Akufo- Ado who is also the President of Ghana had said in Nigeria in the post- Covid era, that ECOWAS needs “to create a credible monetary union built on sound economic fundamentals.”

The Chair also saw the need for the ECOWAS Commission, West African Monetary Agency, West African Monetary Institute,  the different Central Banks and finance ministries to urgently develop a new roadmap and macroeconomic convergence and stability pact for the common currency.