The Director of Research at the Bank of Ghana Dr. Philip Abradu-Otoo, has urged representatives of the Central Banks of West African countries to work hard to ensure they meet all the convergence criteria by December 2026 to enable the full adoption of the common currency ‘Eco’ to compete on the international market.

Eco, the single currency proposed by West African countries was originally expected to be issued in 2020 but was postponed to 2027 due to the COVID-19 pandemic.

Speaking at the West African Monetary Agency Technical Committee Meeting, Dr. Abradu-Otoo said the period 2024 to 2026 is critical for member states if they are to make any meaningful progress with the new roadmap.

“In June 2021 here in Accra, the authority of ECOWAS and heads of states adopted a new roadmap for the launch of the ‘ECO’ and the new macro-economic convergence of stability pact. This followed after the COVID-19 pandemic disrupted the planned launch of the ‘ECO’ in 2020. With the new road map, majority of member states must meet all the primary convergence criteria on a sustainable basis by 31st December, 2026”.

“This implies that the period 2024 to 2026 is critical if we should make any meaningful progress with the new roadmap,” he stressed.

For the common currency to be implemented, 10 convergence criteria, set out by the West African Monetary Institute (WAMI), must be met.

Director General of the West African Monetary Agency, Momoudu Bamba Saho, explained that no member country had met all the criteria as of 2022, hence the extension of the deadline.

“Turning to our compliance with the ECOWAS convergence criteria, the roadmap for the launch of the ECO requires member states to consistently meet all the four primary convergence criteria by 2026. In 2022, only two member states, Guinea and Liberia, met the budget deficit criterion”.

“However, performance on the average annual inflation criterion sharply declined, with only Benin and Niger meeting the target. The central bank financing criterion also saw a deterioration in 2022, with four member states missing the target, emphasising the need for policy reforms”, Dr. Abradu Otoo explained.

Lastly, he said while performance on the gross external reserves criterion weakened slightly in 2022, 14 member states still complied, showcasing the region's resilience.

“No Member States met all four primary convergence criteria. Four Member States (Benin, Niger, Guinea and Liberia) complied with at least three Primary Convergence Criteria,” he outlined.

Proponents of the eco say the single currency will facilitate trade, lower transaction costs and facilitate payments amongst ECOWAS' 385 million people.