Macroeconomic stability key to realising single currency dream – VP Bawumia to West Africa Finance Ministers

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In order to realize the long-held goal of creating a unified currency for the Sub-region, West African states must ensure macroeconomic stability, according to Vice President Dr. Mahamudu Bawumia.

Dr. Bawumia also emphasized the importance of a West African monetary integration, particularly at a time when many economic blocs are being formed around the world in response to the challenges that global economies are currently facing, during his opening remarks at 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, September 15, 2023.

“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,” Dr. 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.”

Despite pointing out obstacles to the adoption of the West African single currency, such as Member states’ failure to meet the requirements, Vice President Bawumia also recognized some important steps forward in the dream’s realization.

“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.”

Dr. Bawumia spoke of Ghana’s commitment to and efforts to ensure that, while citing member states’ macroeconomic stability as a crucial requirement for realizing the environmental dream.

“We in Ghana, are committed to restoring macroeconomic stability that forms the basis of sustainable economic growth and developmen,” said the Vice President.

“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.”


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