Ecowas new currency 2020
You're referring to the proposed single currency for the Economic Community of West African States (ECOWAS)!
In 2020, ECOWAS announced plans to introduce a single currency, known as the "ECO," to replace the various national currencies used by its member states. The goal is to promote economic integration, increase trade, and reduce transaction costs within the region.
Here are some key details about the ECOWAS single currency:
- Launch date: The ECO was initially planned to be launched in 2020, but the timeline has been delayed due to various reasons, including the COVID-19 pandemic and the need for further preparations.
- Member states: The ECO will be used by all 15 ECOWAS member states, which are: Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.
- Currency basket: The ECO will be pegged to a basket of currencies, including the US dollar, the euro, and the pound sterling, to ensure stability and reduce the risk of currency fluctuations.
- Convergence criteria: To join the ECO, member states must meet certain convergence criteria, including inflation rates, budget deficits, and exchange rate stability.
- Phased implementation: The introduction of the ECO will be phased, with the initial phase focusing on the adoption of a common currency zone, followed by the introduction of a single currency.
While the ECO is still in the process of being implemented, it has the potential to promote economic integration and growth in the region, as well as improve the lives of citizens by reducing transaction costs and increasing trade.