The West African Monetary Zones (WAMZ) encounter challenges in realizing a unified currency across member states, with timelines extending, as disclosed by Olorunsola Olofeso, Director-General of WAMI, during the 51st Convergence Council meeting in Abuja.
Olofeso highlighted a decline in key convergence indicators, critical benchmarks for achieving the monetary union. This setback raises doubts about the feasibility of introducing a unified currency, a longstanding goal for regional economic integration.
The aim of a single currency is to promote economic stability, enhance trade, and facilitate seamless transactions. However, varying economic policies, inflation rates, and fiscal deficits among member states pose significant hurdles.
The meeting convened stakeholders to assess progress and strategize on overcoming challenges. Olofeso noted that as of June 2023, all member states failed to meet the primary convergence criteria, with the zone’s performance score declining to 29.2%.
Medium-term projections suggest none of the member states will meet the criteria sustainably for the remaining convergence phase (2024-2026) of the ECOWAS Single Currency Roadmap (2021-2027).
Chairman of the Committee of Governors, Olayemi Cardoso, directed WAMI to provide periodic comprehensive reports on macroeconomic status and to update its database for policy analysis. Additionally, seminars will be convened to address macroeconomic policy issues.