Criteria for adoption
That includes member countries having a budget deficit of not more than 3%; average annual inflation of less than 10% with a long-term goal of not more than 5% by 2019. Countries were expected to also have gross reserves that can finance at least three months of imports. The other convergence criteria that have been adopted by ECOWAS are public debt or Gross Domestic Product of not more than 70%. There is also the issue of central banks financing budget deficit not more than 10% of previous year’s tax revenue, and nominal exchange rate variation of plus or minus 10%. At the end of the Abuja meeting, a communiqué read by Nigeria’s Permanent Secretary, Ministry of Foreign Affairs, Mustapha Suleiman noted that the regional leaders instructed the ECOWAS Commission to work in collaboration with West African Monetary Agency. The commission is also expected to work with West African Monetary Institute and all central banks to settle on a symbol for the single currency.Significant progress
The ECOWAS Chairman President Issoufou Mahamadou has said that the revised roadmap does not affect the date for the issuance of the single currency in January 2020. Speaking about the deadline for adoption Mahamadou said “We have not changed that but we will continue with assessment between now and then. “We are of the view that countries that are ready will launch the single currency and countries that are not yet ready will join the programme as they comply with all six convergence criteria.” ECOWAS has a combined population of 385 million and was set up in 1975. It comprises Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. Eight of these countries use one currency called the CFA franc. Those are Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. The current decision to adopt one currency is similar to the move made by the European Union to adopt a single currency called Euro.DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Ripoti App launched to empower journalists, others to tackle digital rights violations in Africa
15 seconds -
Ground-breaking health investment charter to tackle worker shortages in Africa
5 mins -
From Mortuary to Matrimony: Feature on how couple’s love journey brewed at the morgue airs on Joy Prime
20 mins -
Ghana’s LPG prices rank among the highest globally – LPG Marketers Association
27 mins -
Filth Exhibition: Residents near Korle Gonno bear the brunt of nationwide filth
41 mins -
We’ve not selected NPP members as returning officers – EC replies Mahama
58 mins -
We’ll not honour any invitation – ECG tells Ashanti Regional Minister
1 hour -
Dumsor vigil to hit Accra
1 hour -
Supreme Court rule for dual citizens to hold other key positions laudable – Kwaku Asare
2 hours -
‘No one is above the law’ – CAF president on match-fixing allegations against Samuel Eto’o
2 hours -
Manchester City thrash Brighton to go second in table
2 hours -
NDC’s running-mate speech proves readiness to lead – Asah-Asante
2 hours -
Further win for nibima as another KNUST study supports medicinal prowess
2 hours -
World Bank’s food price index eases; maize, wheat prices hit 3-year low
4 hours -
2020 polls all about pulling Ghana back from precipice of destruction, corruption – Naana Jane
4 hours