By Gloria Ikibah
The Economic Community of West African States (ECOWAS) is currently reevaluating its plans for the ECO, the proposed single currency for the region, after facing persistent challenges over the years.
Senator Edwin Melvin Snowe, Co-chair of various ECOWAS committees, revealed in an interview in Banjul, Gambia, that the single currency initiative is experiencing significant setbacks.
Naijablitznews.com reports that the ECO project, initially proposed in the late 1990s and gaining momentum with the establishment of the West African Monetary Zone (WAMZ) in 2000, was aimed to foster economic growth and integration among the 15 member states by simplifying transactions and enhancing regional prosperity.
Despite these ambitions, the initiative has been grappling with political complexities. According to Hon. Snowe, political challenges have hindered progress. He noted that while there are capable economists and analysts, the integration of the ECO has been complicated by existing currency systems, particularly the French CFA used by Francophone countries and the reserve systems in France.
Snowe suggested a potential interim solution: creating separate currencies for Anglophone and Francophone countries.
He proposed that English-speaking nations such as Nigeria, Ghana, Liberia, Gambia, and Sierra Leone could initially adopt a common currency, while Francophone countries would adopt another. Over time, these two currencies could merge into a single currency.
Political instability has delayed consideration of this dual-currency proposal, but Hon. Snowe assured that addressing regional security issues is the current priority. Once stability is achieved, discussions about the single currency will be revisited.