Single currency

An Economist, Prof. Akpan Ekpo, has called on West African countries to fast track the launch of a single currency that would boost trade and economic growth in the region.
Ekpo , a former Director General of the West African Institute for Financial and Economic Management (WAIFEM), said on Sunday in Lagos that what the region needed for the take-off was only “a political will”.
He added that once the currency was launched, economies would find its place and other players would follow.
The experts reaction came on the background of the new road map agreed upon by the heads of state of the Economic Community of West African States (ECOWAS) to launch the Eco single currency in 2027.
Recalled that the planned currency which ought to have begun in 2020, was derailed by the Coronavirus pandemic; member states have also been unable to meet the convergence criteria for the launch.
The criteria include inflation, debt-to-GDP ratio, budget deficits and their financing, reserves and exchange rate stability.
According to Ekpo, if they wait for all the countries to meet to the criteria, there will never be a single currency because countries met it at different times and most times not all of the important criteria.
Ekpo said, “There is what is called `point convergence’, if you let two or three countries who are big in the region like Nigeria, Ghana, Senegal and Cote d’lvoire to jump-start it, if they have the `political will’ to do so, it will solve the problem.
“Look at Nigeria’s inflation rate; it’s almost 18 per cent now, food inflation 20 per cent. So, the problem is, do they have the political will to do that?
“For instance, the Francophone countries CFA are tied to the Euro and all of them almost meet the criteria, if they disentangle their money from Euro, they will have high inflation rate for example.
“I am happy that Nigeria is not rushing into it because if they convert now, Nigeria will bear the burden for all other countries,’’ he said.