West African to have a common currency by 2015?

Member States in the West Africa Monetary Zone are certain they will by the 1st of January 2015 have a new currency.

This means, Ghana, Gambia, Guinea, Nigeria and Sierra Leone and Liberia will have a common currency to enhance trade facilitation.

The countries have put on hold the move because many of them have not met the criteria.This criterion includes attaining single digit inflation, meeting a reserve of the Central Bank on imports of goods and services for duration not less than three months as well as a fiscal deficit of not more than three per cent of Gross Domestic Product, excluding grants.

Governor of the Bank of Ghana, Dr Henry Kofi Wampah is optimistic all countries will met the criteria soon.

“The WAMZ member states had set 1st January 2015 for the launch of the common currency; I will therefore urge those of us in the WAMZ to continue to work tirelessly towards this important milestone,” Dr Wampah said.

According to him, during the Dakar 2000 meetings, it was agreed that macroeconomic convergence should precede monetary union, and further conditions were set for phases of monetary union in ECOWAS; providing governors with more compelling grounds to work harder at convergence.

He added that, “it is our responsibility to give meaning to these in order to help transform the ECOWAS region into a viable and productive economic and financial space that is truly competitive and able to withstand pressures in a fiercely competitive global economic system.”

Source: citifmonline