18.12.2024 16:41
The Economic Community of West African States (ECOWAS) is transitioning from the CFA franc, a legacy of 74 years of colonialism, to a common currency called 'eco'. The aim is to reduce regional trade costs and increase prosperity with the eco.
After serving colonizers for over 400 years, African countries are preparing to crown their ongoing transformation with a common currency.
African countries are abandoning the 74-year-old currency, the CFA franc, a legacy of French colonialism. The Economic Community of West African States (ECOWAS) has accelerated efforts to implement the planned common currency 'eco' for the region.
A NEW ERA BEGINS IN AFRICA
ECOWAS leaders gathered in Abuja, the capital of Nigeria, reiterated that consensus has been reached on 'eco' at the end of the summit. Member states and central banks of the union were asked to take measures to ensure the necessary financial contributions to make 'eco' operational.
While emphasizing the importance of adhering to the timelines set for the establishment and operationalization of the necessary institutions for the launch of eco, it was noted that ECOWAS aims to transition to the use of a common currency by 2027.
COSTS WILL DECREASE, PROSPERITY WILL INCREASE
The common currency 'eco' is expected to reduce the high trade costs arising from the use of different currencies within the region and to increase intra-regional trade. Thus, significant economic prosperity is anticipated for ECOWAS countries.
10 COUNTRIES HAVE SWITCHED TO THE COMMON CURRENCY
Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo decided to switch to the eco currency starting from 2020, while Nigeria, Sierra Leone, Liberia, Gambia, Ghana, and Guinea rejected the use of a common currency.