Every now and then, talks about a single currency for ECOWAS resurface and hijack discussions. Again, in a recent interview with journalists in Banjul, Gambia, ECOWAS was the focus of the discussion.
Edwin Melvin Snowe Junior is a key member of the ECOWAS Parliament and Co-chair of several important committees. He shared some unexpected news.
The Economic Community of West African States (ECOWAS) has decided to put its long-awaited plan for a single currency, the ECO, on hold.
This decision comes after many years of struggles and delays in making the initiative a reality.
In the late 1990s, a bold idea began to take shape in West Africa.
Leaders from the 15-member Economic Community of West African States (ECOWAS) envisioned a single currency.
This currency would unite their diverse economies, they believe.
This ambitious project, known as the ECO, gained momentum in 2000 with the creation of the West African Monetary Zone (WAMZ).
The goal was clear: to create a unified currency that would simplify transactions, reduce the hassles of currency exchange, and drive economic growth across the region.
The ECO was seen as a cornerstone for a more integrated and prosperous West Africa.
Political Challenges
However, the journey to a single currency has not been smooth.
The project has faced numerous obstacles, especially political ones, leading to its indefinite postponement.
Edwin Melvin Snowe Junior, a prominent member of the ECOWAS Parliament and Co-chair of several key committees, recently shed light on the situation.
In an interview, he explained that the challenges facing the ECO are primarily political, not economic or technical.
“The single currency is a work in progress,” Snowe Junior said.
“It has its own political implications. There have been a lot of political situations that need to be addressed.
“It’s not that we lack competent economists or analysts to implement it.”
Major Hurdles And A New Approach
One of the major hurdles has been integrating the use of the CFA franc, used by French-speaking countries and tied to France, with the currencies of English-speaking countries.
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This complex issue requires significant political will and negotiation.
“So, it still needs a lot of political will,” Snowe Junior noted.
“That is why the last three countries that experienced coups are considering changing their currencies because their reserves are held in France, not in West Africa or Africa.”
To tackle these challenges, ECOWAS is now exploring a new approach.
The plan is to establish separate currencies for Anglophone and Francophone countries as a steppingstone toward eventual unification.
“We propose that Nigeria, Ghana, Liberia, Gambia, and Sierra Leone—the five English-speaking countries—could use one currency for now.
“The Francophone countries could have another currency.
“Over time, these two currencies could potentially merge into a single currency,” Snowe Junior explained.
Despite recent political instability and coups, the focus has shifted to restoring regional security.
Snowe Junior assured the gathering that the idea of a single currency remains on ECOWAS’s agenda.
He emphasised that this goal continues to be a priority for the organization.
“We have been more concerned with putting the region back together, resolving the security situation, and then we can revisit the single currency issue,” he said.
For now, the ECO project is on hold, but the vision of a unified West African currency continues to inspire hope.
The success of this ambitious goal depends on overcoming political challenges and achieving greater regional stability.
