Like Nigeria, Ghana adopts caution on ECOWAS single currency

The Ghanian government says it will proceed with caution before adopting the single currency proposed by the Economic Community of West African States (ECOWAS) — days after endorsing the adoption of Eco by eight countries in the subregion.

At its 55th ordinary session in July, the heads of the 15-member countries had agreed to launch ECO, its proposed single currency, in 2020.

The community also agreed that a flexible currency regime will be adopted.

But in a statement on Friday, the Bank of Ghana said there are several unresolved issues regarding the common currency which requires time to settle.

The apex bank said this while justifying its introduction of new higher Ghana cedi denomination banknotes, which have been described in some quarters as an “ambush”.

It said the Ghanian government will work with ECOWAS to ensure a sustainable and viable currency.

“Furthermore it has been alleged that the expenditure is a waste in the context of a new Eco currency in 2020. The Bank of Ghana would want to clarify that although the Government of Ghana is committed to do all it can to join the West African common currency arrangement, there are many unresolved issues regarding the common currency, which would take time to resolve,” the statement read.

“The Bank of Ghana will be working with ECOWAS Central banks to ensure that any currency arrangement will be viable and sustainable.”

On December 21, eight countries namely Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo, announced that they would be changing from the CFA Franc to Eco.

The countries, which are all French colonies except Guinea-Bissau, severed financial links to France with the decision.

In Nigeria, Zainab Ahmed, the minister of finance, budget and national planning, said the country is still working on the next course of action on the adoption of the single currency.