President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng has cautioned against likely depreciation of the proposed common currency, the ECO considering the economic size of some countries.
His call comes at a time that Ghana is getting ready to join French-speaking West Africa to use the ECO which has been pegged to the EURO.
Considering the current trade volumes among member states and issues bordering on the closure of the Nigeria-Benin Border, Dr Joseph Obeng fears the use of a common currency in West Africa could suffer, leading to depreciation.
“There should be a caution here. If we have to adopt a single currency then we have to get an effective monitory system in place. If you look at Nigeria which has a GDP larger of the entire Sub-Region, if we do not take are, if Nigeria takes a unilateral action like it recently did with the closure of its border, it will affect the bulk of the entire sub-regional currency,” he told JoyBusiness.
The government says it will soon join eight West African Countries which have committed to using a common currency, the ECO, from the year 2020.
The government has commended the decision by eight West African Countries which have committed to using a common currency, the ECO, from the year 2020.
President’s Director of Communication, Eugene Arhin, said the decision will help remove trade and monetary barriers, reduce transaction costs, boost economic activity, and raise the living standards of countries involved.
On December 21, 2019, the President of the West African Economic and Monetary Union (UEMOA), Alassane Ouattara, at a news conference with French President, Emmanuel Macron, in Ivory Coast made a declaration on the decision taken by eight (8) West African Member States of UEMOA to discontinue the use of the Financial Community of Africa (CFA) franc currency.