ECOWAS Sets 2027 Target For Launch of Single Currency ECO
Sorie Abubakar The Economic Community of West African States (ECOWAS) has advanced efforts to launch its single currency, ECO, with the new target date set for 2027.
This decision follows a consensus reached during the 65th Ordinary Session and was reaffirmed at the 66th Ordinary Session of the ECOWAS Authority of Heads of State and Government held in Abuja on Sunday.
The region of 15 countries had originally planned to unveil the ECO in 2020, but the launch was delayed due to the COVID-19 pandemic. Now, ECOWAS is working on practical arrangements for the currency’s introduction, which is expected to significantly boost regional trade and economic prosperity.
In the communiqué issued after the meeting, ECOWAS leaders approved the criteria put forth by the High-Level Committee for selecting member states to participate in the ECO launch.
The bloc has instructed the ECOWAS Commission, in collaboration with the West African Monetary Agency (WAMA), to incorporate these criteria into the protocol of the ECOWAS Monetary Union Agreement.
The Authority also endorsed proposals on the financing and cost structure required for the reform and institutional frameworks necessary for the launch of the single currency. Member states’ central banks have been urged to make the necessary financial contributions to ensure the operationalization of these institutions once the launch date is finalized.
The heads of state stressed the importance of meeting deadlines for the establishment and operationalization of the institutions vital for the ECO’s launch and urged increased cooperation with technical and financial partners.
Beyond currency reform, the ECOWAS leaders emphasized agricultural development, recognizing the critical role of agriculture in regional socio-economic growth. They instructed the Commission to expedite the implementation of key regional initiatives, including the Development of Livestock Farming and Pastoral Systems, the Regional Rice Self-Sufficiency Initiative (2025-2035), and the domestication of the Comprehensive African Agriculture Development Programme (CAADP) Action Plan (2026-2035).
The ECOWAS single currency, the ECO, aims to improve trade within the region by reducing trade costs and overcoming barriers posed by multiple national currencies. It is also expected to drive economic growth and prosperity for member countries.
Although the transition to a single currency may involve an initial period where both national currencies and the ECO circulate side by side, there are proposals to implement the ECO in phases, starting with distinct ECO zones where countries peg their national currencies to the new common currency.
This is wonderful news. I wonder what took them this long when dollar hick is killing the people everyday
I biologicaly agree to the idea
Wow! That’s so great.
These are good initiatives if and only if they are implemented and maintain sustainability standards. May God Almighty make it happen as soon as expected, Ameen.
These are good initiatives we all were expecting.