Re: France’s currency war against West Africa
OHIMA AGANSOLIHA, New York City, US, [email protected]
oadix.com: Regarding Dr Obadaiah Mailafia’s December 30, 2019 eloquently-written entitled column, I’m once more reminded to heed the words of President Olusegun Obasanjo, on working together towards the country’s fullness and potential.
I simply doubt the “pre-mature” eminence of the “Eco” currency can be attributed to any form, or re-emergence of colonial intervention by France. I suspect it can be likened to a continual promotion of its influence over lagging West African societies, which doesn’t differ from Britain’s decision to join China’s Asian Infrastructure Investment Bank (the AIIB ) and exert some form of influence over developing the lagging South-east Asian region. Also insightful is the fact that each of the Francophone
African countries has never had practical experience managing the intricacies of a stable sovereign currency. The “Eco” appears to be the only currency option available for them. So, I doubt it was a matter of “upstaging” Nigeria, or pre-empting the pre-mature existence of “Eco” before its ultimate introduction in 2020.
It is a symbolic decision that should supplant the current CFA Francs’ operational requirements and perhaps retain a similar rate valuation as it is still fixed to the “Euro”, another diverging requirement that may be incompatible with ECOWAS’ actual Eco currency proposals.
Now assuming the Ghanaians eventually make a decision to join the “Eco”, it will still be symbolic, considering the short decision time given. It’s almost like an ultimatum to choose between two extreme angles even though Ghana may be the only ECOWAS country currently and consistently compliant with Eco’s convergence criteria. I however agree, the focus should still be on Eco’s actual convergence criteria which are afterall, an economic performance indicator. But seriously, assuming one considers the CFA’S 50-per cent reserve requirements expected by the
French treasury, was a blocking factor towards attainment of the Eco’s actual convergence, which I believe can also be considered a current/ or reserve deficit; and with it taken off, is the West African overall currency convergence still impracticable?
In that case then, Eco’s introduction may not be symbolic afterall; and Nigeria was never prepared, nor was it ready?