Vice-President Mahamudu Bawumia has said that ensuring macroeconomic stability by West African states is key to realising the long-standing dream of achieving a single currency for the region.
Speaking at the opening of the 50th Meeting of the Convergence Council of Ministers and Governors of Central Banks of the Member States of the West Africa Monetary Zone (WAMZ) in Accra, on Friday 15 September 2023, Bawumia also stressed on the significance of a West African monetary integration, especially at a time many economic blocs are being formed around the world, in response to the challenges global economies are currently facing.
“The long-standing dream of the West African Single Currency Project that was mooted a couple of decades ago is as relevant today as when it was first conceived. The recent geoeconomic fragmentation underpins the urgent need for inclusive monetary integration hence the need for stronger policy commitment towards the realisation of this dream,” Bawumia said.
“We, therefore, must double our efforts in ensuring macroeconomic convergence and stability which are the necessary conditions for the take-off of a monetary union.”
“As we engage in development activities in our various countries, we should not lose sight of the fact that macroeconomic stability is vital for monetary union to thrive. We should, therefore, ensure a balance between economic development and macroeconomic stability.”
In spite of highlighting challenges hindering the implementation of the West African common currency, including the inability of member states to meet the set criteria, Bawumia also acknowledged some significant milestones towards realising the dream.
“Despite the daunting challenges, significant milestones have been achieved in the implementation of the activities of the ECOWAS single currency roadmap over the years.
“I understand that the name of the proposed single currency has been determined and is called eco, a federal model structure has been adopted for the common central bank, the name of the common central bank has been determined as Central Bank of West Africa, a flexible exchange rate regime adopted, and inflation targeting framework chosen.”
Ghana’s commitment
While identifying macroeconomic stability by member states as an important prerequisite towards realising the eco dream, Bawumia spoke of Ghana’s commitment towards and ensuring that.
“We in Ghana, are committed to restoring macroeconomic stability that forms the basis of sustainable economic growth and development,” said Bawumia.
“We are leaving no stone unturned under our Programme for Economic Growth (PC-PEG) aimed at restoring macroeconomic stability and debt sustainability, building resilience through the implementation of wide-ranging and strong structural reforms, and laying the foundation for stronger and more inclusive growth, while also protecting the poor and the vulnerable.”
“Over the medium term, we shall continue to work hard to revive the economy and improve on our performance on the convergence criteria.”
Listen to Vice-President Mahamudu Bawumia in the attached audio:
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