The Economic Community of West African States (ECOWAS) has intensified efforts to finalize practical arrangements for the launch of its single currency, ECO, following consensus on the implementation of directives issued at its 65th Ordinary Session.
This was disclosed in a communiqué issued at the end of the 66th Ordinary Session of the Authority of Heads of State and Government, held in Abuja on Sunday.
The 15-member regional bloc had initially planned to introduce the ECO in 2020; however, the launch was delayed due to the coronavirus pandemic. A new target date has now been set for 2027.
The Authority announced that it has adopted criteria proposed by the High-Level Committee for selecting candidate member states to participate in the initial launch of the ECO, or to join at a later stage. The ECOWAS Commission, in collaboration with the West African Monetary Agency (WAMA), has been tasked with ensuring that these criteria are incorporated into the protocol establishing the ECOWAS Monetary Union Agreement.
Additionally, the Authority endorsed proposals from the High-Level Committee regarding the costs, funding sources, and modalities for financing the necessary reforms and institutions required for the ECO’s implementation.
The communiqué urged member states and central banks to take the necessary steps to fulfill their financial contributions, facilitating the operationalization of institutions needed for the single currency launch once the effective date is decided.
The Heads of State also instructed the High-Level Committee, in collaboration with the ECOWAS Commission, to intensify efforts to meet the deadlines for establishing and operationalizing the necessary institutions to support the ECO.
The ECO is expected to boost economic integration and regional trade across West Africa, enhancing the bloc’s economic stability and cohesion.
