Introducing ‘ECO’, A New Single Trade Currency For West African Countries

As a goal to make Africa more economically integrated, the Economic Community of West African States (ECOWAS) have just introduced the new single trade currency, ECO, to be launched by 2020. The 15 member-countries, including Burkina Faso, Côte d’Ivoire, Ghana, Niger and Nigeria, have adopted this decision at the 55^th Summit of the regional body, at Nigeria’s capital, Abuja.

The decision came after almost 30 years of discussions. According to CNN, ECOWAS will be cooperating with West African Monetary Agency (WAMA), West African Monetary Institute (WAMI) and central banks to facilitate the implementation of the new currency in 2020, as planned.

It is expected that the planned single currency will boost the cross border trade in West Africa and the economic development in the region, in addition to solving the problem of exchanging currencies. Yet, suspicions are present since the 15 member-states have diverse economies, with different rates of debts. The African Development Bank Group (ADBG) announced in a report that the 2020 deadline could be postponed if the continent's states didn't align its monetary policies. So, will they be able to share a single currency?