21.Jun .2021 22:00

ECOWAS: West African Bloc Aims to Launch Single Currency in 2027

ECOWAS: West African Bloc Aims to Launch Single Currency in 2027
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The 15-nation Economic Community of West African States (ECOWAS) announced 2027 as the new date to launch its single currency, the "eco."

The bloc had planned to launch a common currency this year but postponed the plan due to challenges posed by the coronavirus pandemic, Deutsche Welle reports.

"Due to the shock of the pandemic, the heads of state had decided to suspend the implementation of the convergence pact in 2020-2021," Jean-Claude Kassi Brou, president of the ECOWAS Commission, told a news conference after a summit of the leaders in Ghana.

"We have a new road map and a new convergence pact that will cover the period between 2022-2026, and 2027 being the launch of the eco," he said.

For decades, the bloc had hoped that the idea of a common currency would boost cross-border trade and economic development.

The concept of a single currency was first raised in ECOWAS in 2003. Its introduction, however, has been delayed multiple times before this year: in 2005, 2010, 2014.

ECOWAS has faced several challenges to launch the eco, with several of the bloc's member states under economic pressure and struggling to pay their national debts, as well as political instability, such as in Mali. 

The French-backed CFA franc, which is pegged to the euro, is currently used in eight West African countries.

In 2019, Ivory Coast's President Alassane Ouattara announced renaming the CFA franc to "eco," sparking backlash from ECOWAS' English-speaking members.