THE ECO

The local media yesterday reported an easing of the convergence criteria for monetary union within the Economic Community of West African States (ECOWAS) by 2020. Realistically, this is a project for six members of the 15-state community (Nigeria, Ghana, Guinea, Liberia, Sierra Leone and The Gambia) to share a single currency (the “Eco”). The number of criteria has been reduced to six (three primary and three secondary). Nigeria alone meets the first three (budget deficit less than 3% of GDP, gross reserves to cover three months’ imports and single-digit average annual inflation). It also passes two and probably three of the secondary tests. However,  question whether the project is desirable and what support it enjoys among the national governments.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s