PREVIEW
Côte d’Ivoire’s President has said he wants to launch the new regional common currency, by 2026 at the latest
Ghana and Côte d’Ivoire have increased the pressure to move to a new regional common currency among the Economic Community of West African States (Ecowas) a year earlier than planned.
Following a joint summit in Abidjan with Ghana’s President Nana Addo Dankwa Akufo-Addo, Côte d’Ivoire’s President Alassane Ouattara stated: ‘I want this common currency to be available by 2026 at the latest.’
‘Ivory Coast has made significant efforts and from next year, it will be ready to meet the required convergence criteria,’ Ouattara added.
Ecowas had set a 2027 deadline for moving to the new currency at a summit in 2021.
The two leaders said that their finance ministries had been given clear instructions to accelerate the implementation of policies needed to meet the convergence criteria on inflation, exchange rates, and budget deficits in order for the eco to be launched.
Ouattara is known to be the main regional voice in favour of a quick move to a common currency, but others are still reluctant to move quickly particularly as most of the region’s states are currently significantly in breach of the currency union’s limits on debt, inflation and deficits (AC Vol 63 No 11, Leaders favour new CFA franc plan).
Despite being elected on a platform of rolling back France’s post-colonial influence, including the CFA, which is pegged to the euro, Senegal’s President Bassirou Diomaye Faye has taken a more gradualist stance on the currency question (AC Vol 65 No 9, Will Senegal's President Faye lead West Africa out of France's monetary zone?).
Some analysts have mooted the idea of introducing the eco soon but initially having the new currency operate in the present euro-pegged system. That would give states more time to meet the economic criteria and develop the infrastructure such as a regional central bank to regulate the currency union, while defusing the populist pressure for a quick break with the CFA.
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