Везде
ECOWAS and introduction of single currency in West Africa: problems and prospects
Table of contents
Annotation Estimate Publication content
References Comments
Share
QR
Metrics
ECOWAS and introduction of single currency in West Africa: problems and prospects
Annotation
PII
S032150750008721-5-
DOI
10.31857/S032150750008721-5
Publication type
Article
Status
Published
Authors
Alexander M. Zhambikov 
Occupation: External Fellow of Institute for African Studies, Russian Academy of Sciences
Affiliation: Institute for African Studies, Russian Academy of Sciences
Address: Russian Federation, Moscow
Edition
Issue 3
Pages
54-58
Abstract

The article describes the project of introducing single currency in the ECOWAS, its reasons, current situation, problems and prospects. The description outlines that although the idea of monetary integration has been discussed by the Community for more than 30 years, it has not yet been put in practice. Within the ECOWAS, there is already one common currency (franc CFA) created by France in 1945 and used by eight member states of West African Economic and Monetary Union (UEMOA) until now. The analysis includes various aspects of monetary reform of franc CFA, changing its name to eco and positions of different ECOWAS countries towards the ongoing transformation. Supported by France, the UEMOA has announced its intention to replace the unpopular “franc CFA” by “eco” that is already designed for a future ECOWAS single currency. As a guarantor, France waived some of its old requirements for common currency users, but is still ready to assist the UEMOA in case of crisis. The fixation of eco rate to euro is planned to be maintained. The most outstanding contradiction of ECOWAS and UEMOA projects is whether the rate of eco should be flexible and independent from any currency or fixed to euro (as franc CFA at the moment). Special attention is paid to political component of the transformation and possible scenarios for future. The conclusion is that adoption of ECOWAS single currency in the near future is unlikely. Moreover, even in case of success the project will not be a panacea for socio-economic problems of the Community.

Keywords
ECOWAS, UEMOA, franc CFA, eco, monetary union
Received
30.03.2020
Date of publication
30.03.2020
Number of purchasers
37
Views
4544
Readers community rating
0.0 (0 votes)
Previous versions
S032150750008721-5-1 Дата внесения правок в статью - 10.03.2020
Cite   Download pdf

References

1. GDP (current US$) World Bank national accounts data, and OECD. National Accounts data files. World Bank. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?year_high_desc=true (accessed 14.01.2020)

2. ECOWAS Commission restates commitment to strengthening regional customs union and infrastructure upgrade. ECOWAS 02.11.2018. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?year_high_desc=true (accessed 14.01.2020)

3. 40 Years of Free Movement in ECOWAS. ECOWAS 29.05.2019. https://www.ecowas.int/40-years-of-freemovement-in-ecowas/ (accessed 14.01.2020)

4. Key Statistics and Trends in Regional Trade in Africa. UNCTAD – Division on International Trade and Commodities, United Nations. https://unctad.org/en/PublicationsLibrary/ditctab2019d3_en.pdf (accessed 14.01.2020)

5. Ordu A.U. An evaluation of the single currency agenda in the ECOWAS region. Brookings Institution 24.09.2019. https://www.brookings.edu/blog/africa-in-focus/2019/09/24/an-evaluation-of-the-single-currency-agenda-in-the-ecowas-re gion/ (accessed 14.01.2020)

6. Histoire du franc CFA. Banque Centrale des Etats de l’Afrique de l’Ouest. https://www.bceao.int/fr/content/histoiredu-franc-cfa (accessed 14.01.2020)

7. Inflation, consumer prices (annual %). World Bank. https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG (accessed 14.01.2020)

8. Dewast L. L’éco d’Afrique de l’Ouest: Quelle différence ferait une monnaie unique? BBC. https://www.bbc.com/afrique/region-48911056 (accessed 14.01.2020)

9. Final Communiqué of 22nd Session of the Authority of Heads of State and Government. ECOWAS. 10.12.1999. https://www.ecowas.int/wp-content/uploads/2015/02/22nd-ECOWAS-Summit-Lome-9-10-Dec-1999.pdf (accessed 14.01.2020)

10. West African Monetary Institute (WAMI). ECOWAS. https://www.ecowas.int/specialized-agencies/west-africanmonetary-institute-wami/ (accessed 14.01.2020)

11. West African Monetary Zone. West African Monetary Institute 14.01.2020. http://www.wami-imao.org/ (accessed 14.01.2020)

12. Africa-Finance: CFA Franc Spreads its Wings to Guinea Bissau. Inter Press Service News Agency 30.07.1997. http://www.ipsnews.net/1997/07/africa-finance-cfa-franc-spreads-its-wings-to-guinea-bissau/ (accessed 14.01.2020)

13. Final Communiqué of the 55th Ordinary Section of the Authority of ECOWAS Heads of State and Government. ECOWAS 29.06.2019. https://www.ecowas.int/wp-content/uploads/2019/07/Final-Communiqu%c3%a9_55th-Summit_Abuja_29June-2019-1.pdf (accessed 14.01.2020)

14. Le président du Bénin fait un pas de plus vers la disparition du franc CFA. RFI Afrique 08.11.2019. http://www.rfi.fr/afrique/20191108-le-president-benin-fait-pas-plus-vers-disparition-franc-cfa (accessed 14.01.2020)

15. Le débat est relancé autour d’une réforme du franc CFA. Le Monde 15.11.2019. https://www.lemonde. fr/afrique/article/2019/11/15/le-debat-est-relance-autour-d-une-reforme-du-franc-cfa_6019355_3212.html (accessed 14.01.2020)

16. Manifestations d’opposants au franc CFA en Afrique et en région parisienne. Le Monde 18.09.2017. https://www.lemonde. fr/afrique/article/2017/09/18/manifestations-d-opposants-au-franc-cfa-en-afrique-et-en-region-parisienne_5187205_3212.html (accessed 14.01.2020)

17. Ouattara annonce le remplacement du franc CFA par l’éco en Afrique de l’Ouest. RFI Afrique 21.12.2019 http://www.rfi.fr/afrique/20191221-macron-ouattara-annonce-remplacement-franc-cfa-afrique-ouest-eco (accessed 14.01.2020)

18. Alassane Ouattara annonce l’adoption de l’eco par les pays de l’Umoa à partir de juillet 2020. Jeune Afrique 21.12.2019. https://www.jeuneafrique.com/873002/economie/alassane-ouattara-annonce-ladoption-de-leco-par-les-pays-de-lumoa-a-part ir-de-juillet-2020/ (accessed 14.01.2020)

19. Franc CFA: le Ghana approuve l’abandon de la monnaie. Le Monde 30.12.2019. https://www.lepoint.fr/afrique/franc-cfa-le-ghana-approuve-l-abandon-de-la-monnaie-30-12-2019-2355146_3826.php (accessed 14.01.2020)

20. ECOWAS Common Currency: Diplomats interpret positions of Ghana, Nigeria. The News Nigeria 04.01.2020. https://www.thenewsnigeria.com.ng/2020/01/04/ecowas-common-currency-diplomats-interpret-positions-of-ghana-nigeria/ (accessed 14.01.2020)

21. What is Nigeria’s position on the Eco currency? Agence de Presse Africaine 30.12.2019. http://apanews.net/en/pays/nigeria/news/nigeria-studying-planned-regional-currency-eco-official (accessed 14.01.2020)

22. Franc CFA: le Nigeria affiche sa prudence. Le Monde Afrique 02.01.2020. https://www.lepoint.fr/afrique/franc-cfa-lenigeria-affiche-sa-prudence-02-01-2020-2355735_3826.php (accessed 14.01.2020)

23. Ghana’s Akufo-Addo joins Macron to pitch new role for African diaspora. Radio France Internationale 12.07.2019. http://www.rfi.fr/en/africa/20190712-Ghana-Akufo-Addo-joins-Macron-pitch-new-role-African-diaspora (accessed 14.01.2020)

24. Nigeria. Observatory of Economic Complexity. https://oec.world/en/profile/country/nga/ (accessed 14.01.2020)

25. Ghana. Observatory of Economic Complexity. https://oec.world/en/profile/country/gha/ (accessed 14.01.2020)

26. Cote d’Ivoire. Observatory of Economic Complexity. https://oec.world/en/profile/country/civ/ (accessed 14.01.2020)

27. West and Central Africa. International Organisation for Migration. https://www.iom.int/west-and-central-africa (accessed 14.01.2020)

Comments

No posts found

Write a review
Translate