Adoption Of Single Currency By ECOWAS Suffers Setback

THE move to ensure that member states of the Economic Community of West African States ( ECOWAS) adopt a common currency has suffered a major setback as none of the W est African Monetary Zone ( WAMZ) member states has met the four primary convergence criteria to make that happen.

Speaking at the 48th meeting of the Committee of Governors of the Central Banks of the Member States of WAMZ in Abuja, the Director General of the organisation,

Dr. Olorunsola Olowofeso , explained that the assessment of member states' performance reveals that as of the end of June 2023, all WAMZ member states failed to meet all the four primary convergence criteria.

The member states of WAMZ include Nigeria, Ghana, The Gambia, Guinea, Liberia and Sierra Leone.

The goal of the group is to achieve full economic and monetary union of its six member states.

Olowofeso highlighted that the zone's performance score declined to 29.2 per cent compared to 41.7 per cent during the same period in 2022.

He added: “The medium- term projections on macroeconomic convergence, as indicated by the multi- year national macroeconomic convergence and stability programmes of the member states, suggest that none of the WAMZ member states will meet all the four primary convergence criteria on a sustainable basis for the remaining three consecutive years ( 2024- 2026) of the convergence phase of the ECOWAS Single Currency Roadmap ( 2021- 2027).”

Olowofeso stressed that the

West African Monetar y Institute ( WAMI), an institution of the WAMZ, and one of the specialised agencies of the ECOWAS, would continue to leverage its existing relationships with partners to imple - ment more digital innova - tions as Payments System Digitisation evolves.

He disclosed that regulator y and supervisory mechanisms, along with oversight fr ameworks, would be established in member states to respond to emerging challenges due to the influx of Fintech in the zone.