ECO

Eco

currency, proposed entity

Dem name after	West Africa

De eco be de name for de propose common currency of de Economic Community of West African States (ECOWAS). Dema original plans be say na dem dey take give West African Monetary Zone (WAMZ) wey etalk say dem go introduce de currency first, wey dem eventually merge am plus de CFA franc wey dem use am by de French-speaking west African region within de West African Economic and Monetary Union (UEMOA). Dis san go enable de UEMOA wey dem talk say we go gain complete fiscal den monetary independence from France. De UEMOA talk say dem get alternative propose plan wey ego reform de CFA franc into de eco first, wey dem go extend go all ECOWAS states.

Ten criteria

For dem go implement de Eco, ten convergence criteria, set out by de West African Monetary Institute (WAMI), dem for meet. Dese criteria dem divide am into four primary den six secondary criteria. Up to de fiscal year 2011, ebe only Ghana wey be able to meet all de primary criteria insyd any single fiscal year. De four primary criteria wey each member country for achieve be:

• Single-digit inflation rate for de end of each year.
• Fiscal deficit of no more pass 4% of the GDP.
• Central bank deficit-financing of no more dan 10% for de previous year ein tax revenues.
• Gross external reserves dat can give import cover for minimum of three months.

De six secondary criteria for dem say dem for achieve by each member country be:

• Prohibition of new domestic default payments den liquidation of existing ones.
• Tax revenue should be equal to anaa greater pass 20 percent of the GDP.
• Wage bill to tax revenue equal to anaa less dan 35 percent.
• Public investment to tax revenue equal to anaa greater pass 20 percent.
• Stable real exchange rate.
• Positive real interest rate.

History of de currency

Before 2019

De main goal be common currency, first insyd West African Monetary Institute (WAMI)/West African Monetary Zone (WAMZ) countries–The Gambia, Ghana, Guinea-Conakry (wey ebe French speaking buh dem no dey use de CFA franc), Liberia, Nigeria den Sierra Leone–den later insyd de whole ECOWAS area, wey dem talk am officially insyd December 2000 plus connection plus de formal launch of WAMZ. De Eco be de first plan say dem go introduce am insyd 2003, buh dis dem postpone am plenty times, to 2005, 2010 den 2014. At meeting for de Convergence Council of Ministers den Governors for West Africa for 25 May 2009, dem start de currency reschedule for 2015 due to de international economic crisis. De December 2009 meeting dem san establish plan say dem go begin work wey merge de Eco plus de CFA franc immediately upon de launch for Eco; dis dem plan am say dem go achieve am by 2020.

Insyd 2001, de West African Monetary Institute (WAMI) dem set ein headquarters insyd Accra, Ghana. Dem talk say na ebe interim organisation in preparation for de future West African Central Bank. Ein function den organisation wey dem inspire am by de European Monetary Institute. Thus, WAMI dey provide framework for central banks insyd de WAMZ go start de integration den begin preliminary preparations give de printing den minting for de physical money, just as EMI do before de Eurozone before dem introduce euro. De current director general be Dr. Olorunsola E. Olowofeso.

Recent assessments of member countries ein efforts say dem go meet de criteria be very bleak. De performance scorecard dem present for de 2012 Annual Statutory Meetings for de WAMZ dey show say de GDP growth dem project decline come 6.9% insyd 2012 from 8.7% insyd 2011. De convergence scale for de whole WAMZ area dem san project am go down from score of 79.2% insyd 2011 to 62.5% insyd 2012; as no member meet all de convergence criteria. De average annual inflation rate san increase from 11.6% insyd 2011 to 12.6% insyd 2012. De Director for Multilateral Surveillance ECOWAS Commission, Lassane Kabore, describe de performance as "dismal", buh he san affirm say de commitment of ein commission go establishment de Eco.

Insyd February 2018, ECOWAS affirm say dema intention to restart de process plus de introduction insyd 2020, wey ebe strictly impossible: dem therefore do declaration for dema intent. For 23 February 2018, de economist Jean Joseph Boillot, talk say dem no do any serious work for de technical aspects for dis implementation wey dem say dey are yet dem go do, either for de university level anaa for de state level.

2019

On 29 June 2019 de leaders for de Economic Community of West African States (ECOWAS) formally adopt de name of "eco" for ein project say ego be single currency. De currency dem plan am say dem go introduce am insyd 2020.

ECOWAS leaders meet insyd Abuja for 21 December 2019, six months after dem adopt de name "eco" for de future single currency project. Dis meeting cam after de meeting for de committee of finance ministers den governors of central banks for each community space insyd de Nigeria ein capital.

Quote by de Nigerian press agency NAN, de chair for de ministerial committee talk say ebe only Togo, wey dey among de ECOWAS countries, wey go fi meet dema main requirements or criteria for de adoption of a single currency. Dese criteria dey include convergence, de flexible exchange rate regime, de fight against insecurity den interstate collaboration.

On 21 December 2019 Ivorian President Alassane Ouattara comem announce say de West African CFA franc dem go reform am, wey edey include renaming am as eco. France no go manage dema currency, buh de Banque de France go remain de guarantor for dema convertibility wey dey between de Eco den de Euro plus dem go keep fixe parity. Dem dey expect say ein implementation go take place by de end of 2020.

On 22 December 2019 de Managing Director for de International Monetary Fund (IMF) dey welcome de major reform for de CFA franc as dem decide say ego be eight West African countries den France. For Kristalina Georgieva, dese changes dey "constitute a key step for de modernization of long-standing arrangements wey dey between de West African Economic and Monetary Union den France".

Insyd December 2019, de President for Equatorial Guinea, Teodoro Obiang Nguema, come visit Abidjan wey dey insyd Ivory Coast. During de press point after dis meeting wey he go do between ein colleague two heads of state, Alassane Ouattara den Teodoro Obiang Nguema, de two heads of state san discuss de reform for de West African CFA franc. De Equatorial Guinean president go like say ego see de same reform give de Central African CFA franc, wey he dey see say ebe "obsolete".

On 29 December 2019 de president for Ghana talk say ebe ein desire say dem go adopt de new eco wey dem wan establish say ego fi replace den West African CFA franc.

2020

Insyd January 2020, according to several articles citing local media, Nigeria gonna require five "non-negotiable terms" before dem join de single currency. Some particularly dey mention de deposits insyd de French Treasury as ebe part of de foreign exchange reserves for de future common currency. On dis point, de end of dis guarantee am as already dem mention insyd de reform wey dem propose on December 21. Still according to de Nigerian press, Abuja san dey require de management for de eco by de ECOWAS einself, without forgetting ein impression insyd Africa den eno be insyd France.

Sierra Leone too announce on Thursday 9 January 2020 say dem go make decision on de future ECOWAS single currency, Eco, very soon. De Bank of Sierra Leone (BSL) announce for on Thursday 9 January 2020 say de country go continue plus Leone as ein legal tender until de meeting for de Board of Governors of ECOWAS as dem schedule am for 16 January 2020.

For 14 January 2020 de central banks for de ECOWAS sub-region begin dema extraordinary general assembly wey dem deliberate on questions wey dey relate de introduction of de single currency, de ECO, dem schedule am for 2020. De committee for de central bank governors san dey expect day dem go discuss de implications of de recent announcement by French-speaking ECOWAS countries for de proposal say ego introduce de single currency ECO so say ego replace de CFA franc. De talks san determine de way forward give de member states for de West African Monetary Zone (WAMZ) in accordance plus de roadmap for de introduction of de single currency - de CEE. De ECOWAS technical team, however, be expect say ego present proposals make by de West African Monetary Institute regarding de CEE. De governors should san send dema recommendations give de region ein heads of state go find out say if de region make ready give de introduction for de single currency.

On 16 January 2020 Nigeria den several West African countries, popular bi English-speaking ones, denounce insyd Abuja de decision go replace de CFA franc plus de Eco, saying dat ebe "not in conformity" plus de program as recently dem adopt by de entire region go establish a single currency.

In all cases, de six countries for de West African Monetary Zone (WAMZ) "noted plus concern de declaration aiming say ebe unilaterally rename de CFA franc to Eco by 2020", according to a press release dem issue after dis extraordinary meeting between de various finance ministers den de governors for de central banks. WAMZ bi made up of Nigeria, Ghana, Liberia, Sierra Leone, The Gambia den Guinea (Conakry), wey eno be part of de CFA zone. Dese countries dey consider dat "dis action eno bi accordance plus de decisions" for de Economic Community of West African States (ECOWAS) with a view say "adopting the Eco as de name for de single currency" for de whole region.

Dey "reiterate de importance for all ECOWAS members to adhere to de decisions for de authority for de Heads of State den Government of ECOWAS concerning de implementation for de revise roadmap give de single currency program". A summit dey bring together de heads of state for de WAMZ bi plan "soon" to decide for de conduct to come, specifies de final communiqué.

Dema 16 January statement san bring for de light den battle for leadership wey dey between Côte d'Ivoire den Nigeria. Insyd publicly criticizing de decision for de West African Economic and Monetary Union (Uemoa) wey rename de CFA franc “eco” by 2020, de finance minister den central bank governors for De Gambia, Ghana, Guinea, Liberia, Nigeria den Sierra Leone get not only dey reveal de divisions for ECOWAS.

On 31 January 2020 Ivorian President Alassane Ouattara come clarify say de allege rejection of de Eco by de 7 countries for de West African Monetary Zone (WAMZ). "We get only five countries wey ended up insyd Abuja out of de fifteen for de Economic Community of West African States [ECOWAS]", he bore, cutting de grass under ein feet CFA anti-Francs, many of them shouting “white cap and white cap”.

"De majority for de countries wey no dey attend dis meeting. Eno be a meeting of heads of state, buh for ministers den governors," Ouattara talk say. "What we decide for de level of heads of state, wanna go bring de eco insyd 2020", for de basis, he insists, of "conditions".

De first condition wey you go meet de 5 performance criteria: deficit of less dan 3%, debt wey ebe less than 70%, low inflation, etc. (...). For de moment, dem bi only four or five countries, including Côte d'Ivoire, dat meet dese criteria," he talk am, wey he dey stress dat de process should be "gradual". "Five, eight, ten countries [meeting de criteria] wey can come together," he talk am, wey edey add dat others wey dem could den join dem like de eurozone wey start am at eleven den wey edey include ten nine countries today.

“We wan do am in stages. We no dey want haste am, buh we san no dey want countries dat no dey meet de convergence criteria go shake up de process", he conclude am.

Insyd February 2020, de Nigerian foreign minister dey reveal dat de meeting wey dem attend by President Muhammadu Buhari den chair by de President of ECOWAS, President Mahamadou Issoufou of Niger, san discuss de new single currency for West Africa, de CEE.

On dis specific point, Minister Onyeama announce say "Nothing has change plus regard go de position for Nigeria". He explain say according to Nigeria, de convergence criteria no meet by de majority for countries den dat ebe therefore necessary go extend de deadline for de launch for ECOWAS single currency.

Insyd February 2020, an extraordinary summit for de Economic Community of West African States (ECOWAS) took place. Many points dem raise. In particular de establishment for de single currency (Eco).

On de single currency, de final communiqué wey dem sanction dis meeting mentions dat de Conference of Heads of State den Government for de subregional organization bi satisfy plus de important developments initiate am by de West African Economic and Monetary Union (Uemoa) insyd de creation for de single currency. "De Conference dem inform am by Alassane Ouattara, President for de Republic for Côte d'Ivoire, President for de Conference of Heads of State of Uemoa for reform for de CFA franc. Dis reform bi a step towards achieving de establishment for de Eco as dem dey provide for insyd de road map wey dem adopt by de Conference for Heads of State of ECOWAS. De Conference dey express satisfaction plus dese important developments den de insights wey dem provide by de president for de Conference of Heads of State of Uemoa for dis issue," read de press release.

On 17 February 2020, de West African Economic and Monetary Union (Uemoa, eight countries) dem publish am den ein plan extension go de entire Economic Community of African States (Cedeao, 15 countries). Entitle Entry into de Era of Eco: Implications of Reform insyd West Africa, edey aims to address de uncertainties arise from de announcement for dis substitution by Presidents Ouattara den Macron on 21 December 2019. De first conclusion bi dat de parity wey dem maintain with de euro den France ein unlimited guarantee for convertibility go maintain confidence insyd de new currency. Dis guarantee dey help go contain inflation from 2000 to 2019 for an average of 2% insyd de Uemoa region, wey dey compare am plus almost 10% insyd Cedeao den about 16% insyd sub-Saharan Africa. "No immediate effect" for de sovereign rating for de states, de end for de deposit for half dema exchange reserves for de Member States for de Union plus de French Treasury wey no dey worry S-P, sake of de fix exchange rate wey go maintain. "Dat bi why we dey believe say dis reform wey should no get immediate effect for wanna sovereign ratings," de authors conclude. In other words, investors no dey worry for de moment. De second conclusion bi dat de project go extend de eco for de fifteen members for de Cedeao seems say ebe long way off. "Material barriers remain, wey dey lead wey edey consider dis project wey unlikely insyd de medium term," de report says. Firstly sake of Nigeria ein weight, sake of Nigeria accounts for two-thirds for Cedeao ein GDP den three times more dan Uemoa ein. Buh san sake of ein protectionist policies, wey dey talk de report: "Accepting a common monetary policy wey dey between Nigeria den ein Cedeao partners sake of seems difficult, especially since Nigeria get recently dey decide say ego close ein borders plus Benin den Niger go reduce as dem dey smuggle den support local agricultural production. An extension beyond France ein Uemoa guarantee wey san require de approval of de Council for de European Union after consultation plus de European Central Bank, wey eno be automatic. Finally, de adoption for de flexible exchange rate regime desire by Cedeao wey ego increase de significant risks in terms for monetary shocks for Uemoa economies, particularly dose wey dem increase dema use of foreign currency borrowing in recent years. Years, " talk say S-P, recalling de conclusion for de one of ein 2017 reports for de dangers of devaluation: insyd de event for a currency crisis den without de French guarantee, Côte d'Ivoire, Senegal den Togo, wey dey borrow heavily, especially edey form Eurobonds, wey dem go see dema debt heavily go set up den S-P wey ego force de lower dema ratings. De report dey conclude plus de recommendation wey go sharply improve tax revenues den warning: "Whatever exchange rate regime Uemoa members go choose, whether ebe maintenance for de euro, de option for basket of currency (...) anaa floating rate for exchange rate, fiscal discipline den strong economic policy wey ebe more important for de economic stability for de monetary union.

On 20 May 2020, de Council of Ministers for de French Republic wey dem adopt for bill wey according to de Central Bank of West African States, de central bank managing de currency for de eight nations for de West African Economic and Monetary Union wey dem dey use de West African CFA franc, wey eno longer dey require to deposit half for exchange reserves plus de Public Treasury of France. Furthermore, de French government go withdraw from all governing bodies for de Central Bank of West African States; until now, both de Minister of Finance of France den de governor for de Bank of France dey participate insyd de biannual meetings for de Central Bank, one wey edey take place insyd Paris. Both houses for de French legislature, de National Assembly den de Senate, must approve de bill for ein provisions wey go come into force. Subsequent ego ratification, de eco bi expect say ego come into use insyd July 2020. Edey remain for de nations wey ego get propose for de adopt de single currency, whether to continue using de name ‘eco.’ France go guarantee fix exchange rate of 1 euro to 655.96 West African CFA francs, though dis arrangement br likely go change after de introduction for de new currency.

De second step towards de disappearance for de CFA franc den ein replacement by a single currency wey edey call am Eco, de French Parliament wey ego adopt before de end for de third quarter de bill initial on 20 May 2020 insyd de Council of Ministers den intend gp ratify de agreement of monetary cooperation conclud insyd Abidjan on 21 December 2019 plus de governments for de member states for de West African Monetary Union (Umoa).

Given dat a law for de reform for de Eco only dey pass to de French parliament until de end of September 2020, de agreement for adopt de Eco wey eno dey risk doing dis before October 2020.

Insyd September 2020, Alassane Ouattara, President for Côte d'Ivoire, come announce say de decision for de 57th ordinary session for de Conference of Heads of State den Government of ECOWAS go proceed plus de implementation for de eco "within three to five years."