Ghana government has lauded the decision by some eight countries in the ECOWAS sub region to cease using CFA franc for the new common currency, the Eco, from 2020.
The President of West African Economic and Monetary Union (UEMOA), Alassane Ouattara, on December 21 announced the end of the CFA franc in Benin, Burkina Faso, Mali, Niger, Senegal, Togo and his country, Ivory Coast.
“This is a welcome decision, which Ghana warmly applauds,” a statement issued by the Diretor of Communications at the presidency Eugene Arhin said on Saturday.
The decision, according to Ghana government, “is good testimony to the importance that is being attached not only to the establishment of a monetary union, but also to the larger agenda of West African integration”.
It said Ghana is determined to do “whatever it can” to join the Member States of UEMOA soon in the use of the ECO.
Government said it believes the common currency “will help remove trade and monetary barriers, reduce transaction costs, boost economic activity, and raise the living standards of our people”.
It has meanwhile urges the other member states of ECOWAS to work rapidly towards implementing the decisions of the authorities of ECOWAS, including adopting a flexible exchange rate regime, instituting a federal system for the ECOWAS Central Bank, and other related agreed convergence criteria, to ensure that “we achieve the single currency objectives” as soon as possible for all member states.
“We have a historic opportunity to create a new reality for the peoples of ECOWAS, a reality of general prosperity and progress. So, let us seize it,” the government advised.
The Eco is expected to be adopted on the first of July 2020, but since the concept arose in 2003, the target launch date for the currency has been postponed several times; in 2005, 2010 and 2014.