ECOWAS Common Currency Postponed Again: Will the Currency Ever be Launched?
Publication Date: 18/10/2022
Author(s): Akubueze Christian Nzubechi, Peter Thankgod Oyinmiebi, Chima C. John.
Volume/Issue: Volume 5 , Issue 5 (2022)
Abstract:
The plan to introduce a common currency in West Africa has been difficult to achieve. Since this plan was agreed upon by member countries, it has faced more than 5 postponements, and this has made scholars and experts question whether the common currency will ever be introduced in the sub-region. This question comes from the postponement of the launch of the common currency to 2027. Before this announcement, the common currency was confronted with various issues and challenges (convergence criteria, fear of loss of fiscal sovereignty, CFA franc zone, and France hegemonic pressure). ECOWAS blamed the COVID-19 pandemic for the recent postponement of the date to 2027. This paper therefore seeks to interrogate the implication of the COVID-19 pandemic on the common currency process coupled with the already existing challenges and issues that had over the years confronted the common currency. The study relied essentially on qualitative data predicated on secondary data. The study adopted the theory of Optimum Currency Area. The paper revealed that the inability of ECOWAS to overcome the issues facing the common currency caused the postponements. The study recommended, amongst other things, that the issues and challenges should be addressed by ECOWAS, the process of the common currency should not be rushed, and the eurozone crisis should serve as a lesson to ECOWAS.
Keywords:
Eco, ECOWAS, Economy, Integration, Covid19, Common Currency, Regionalism.
