Economic Community of West African States (ECOWAS) says the single currency programme will be launched by 2020
Traore told the media in Lagos this week that the commission was fast-tracking processes toward the implementation of the single currency within the period, Vanguard reported.
“More states have to comply with some macroeconomic criteria like inflation, budget deficit, currency stability; without this, if we set up a common currency, it will fail”.
The West African Monetary Institute set out 10 criteria points for the launch of the currency: the Four Primary Convergence Criteria and Six Secondary Convergence Criteria, the African Review noted.
The four primary criteria include: a single-digit inflation rate at the end of each year, a fiscal deficit of no more than four percent of Gross Domestic Product, a central bank deficit-financing of no more than 10 percent of the previous year’s tax revenue, and gross external reserves that can give import cover for a minimum of three months.