In late Dec-19, West African Economic and Monetary Union (also known by its French acronym, UEMOA) adopted the Eco as its official currency ahead of the Jun-20 timeline set by ECOWAS. This was as they cut some of their financial ties with France that had underpinned the region’s previous common currency, CFA franc.
Specifically, under the new deal, the Eco will remain pegged to the euro but the African countries in the bloc would not have to keep 50.0% of their reserves in the French Treasury and there will no longer be a French representative on the UEMOA board. However, the changes will only affect the West African form of the currency as the Central African counterpart – Economic and Monetary Union of Central Africa (CEMAC), continues to adopt CFA franc as their official currency.
The adoption of the Eco by UEOMA is laudable, bringing recent agitation against the usage of euro-pegged shared currency to an end. Interestingly, Ghana has indicated an interest in adopting the Eco while Nigeria which accounts for 76% of total trade in the ECOWAS region is yet to a stand on joining the new currency union.
United Capital Research