The west african leaders endorsed the currency at their 55th ordinary session. In june 2019 the economic community of west african states ecowas, bringing together eight cfa franc countries and seven others with their own currencies, chose eco short for ecowas as the name for its planned single currency a project going back to the mid1980s. The choice for francophone west african countries is. This paper seeks to inform the discussion on the introduction of a single currency in west africa in an uncertain economic context disrupted by the euro zone crisis. Also, get sample questions to prepare for competitive exams. It is clear that imports from most countries have been reduced from 2007 to date. This is arguably less the case for the relations among uemoa member states where the disparities among states are far smaller. List of countries their capitals and currencies with tricks pdf. Member states economic community of west african states. As mundell 1973a argues, when two countries form a monetary union, they do not need foreign reserves to do transactions. Ecowas budget, because their interests were not satisfied with the decisions taken. Mar 02, 2021 1 important countries and their capitals and currencies list.
List of west african countries, their capitals and currencies. Although, countries like gambia, ghana and senegal have their imports of goods and services stagnated from 2007 to 2016. The impact of trade on economic growth in ecowas countries. It was conceived as a means to ensure development through economic integration and reduce the dependence of the economies of member states on external forces and by extension, promote economic. West african countries, their capitals and currencies. For years, theres been talks about a single currency for african countries, a unified passport for. Introduction and the problem r egional integration, perceived as one means for eradicating mass poverty among the peoples of 16 west african countries, has been the goal of the economic community of west african states ecowas. Collectively, these countries comprise an area of 5,114,162 km 2 1,974,589 sq mi, and in 2015 had an estimated population of over 349 million. What is your analysis of the currencies now in use in west africa. An evaluation of the viability of a single monetary zone. Utilizing data for the 15 ecowas countries, a loglinear regression equation of per capita real gdp is fitted on exports, the exchange rate, investment, human capital, inflation and population growth. A financial charge in form of a tax imposed on imported products.
On april 20, 2000, in accra, ghana, the leaders of six west african countries 1 declared their intention to proceed to monetary union among the noncfa 2 franc countries of the region by january 2003, as a first step toward a wider monetary union including all the ecowas 3 countries in 2004. Far from slowing down monetary integration, the recent experience of the european single currency demonstrates the importance of hastening the introduction of a single west african currency in the economic community of west. Analysts express scepticism the introduction of the ecowas single currency will solve the regions economic problems. Pdf the challenges of regional integration in africa the.
For other member countries, regional trade plays a much more important role. Moreover, there exists a wide variation of per capita gnp figures for the different ecowas countries. Regional integration resulting in greater trade among ecowas countries may. Ecowas adopts eco as single currency the monrovia times.
Consequently, a good number of ecowas countries also stopped fixing exchange rates and overvaluing their currencies in order to stimulate exports and make the economy more competitive. An evaluation of the single currency agenda in the ecowas region. These are the 15 member countries that make up ecowas. Pdf the imperative for a west african common currency in. Ecowas countries not ready the idea of a common currency for the west african region was first mooted almost 30 years ago in the hope of boosting cross border trade and economic development. West africa bloc adopts eco as name of planned shared currency. Economic integration and the common currency agenda of the. Introduction regional integration as a strategy for the collective economic survival of nations around the world has gained remarkable prominence in recent times.
This continued until around 1905, by which time all the lands and resources of the continent of africa had been completely divided and colonized by european countries. Sep 24, 2019 the world banks doing business report 2019 shows that mali, ranked 92, is the only ecowas country included in the top100 best performing countries for trading across borders. Dahomey, gambia, ghana, guinea, guineabissau, ivory coast, liberia, mali, mauritania. List of countries their capitals and currencies with. Before the formation of ecowas, there was no existence of telephone inter connectivity between the member states as phones were basically routed first from europe and connected to countries in west africa. Far from slowing down monetary integration, the recent experience of the european single currency demonstrates the importance of hastening the introduction of a single west african currency in the economic community of west african states ecowas space.
On the other hand, guinea bissaucfa franc and cape verdeescudo, the two portuguese countries use two separate currencies, whereas guinea uses the guinean franc. The study recommends various courses of action such as fostering coordination among central banks of ecowas members, and providing a fund to serve as an incentive for countries that may incur cost. In addition to these 5 and the 8 waemu countries, ecowas. Any country that is not one of the 15 ecowas countries.
Impact of trade balance on current account of ecowas member. The currency was adopted by the authority of ecowas heads of state and government on saturday in nigerias capital abuja. An evaluation of the single currency agenda in the ecowas. In fact, no country in this zone is able alone to resolve the serious externallycreated. Moreover, currency unification is believed to reduce the need for external reserves. Foreign direct investment and monetary union in ecowas sub. History economic community of west african statesecowas. Jun 30, 2019 beginning in january 2020, liberia and other countries within the west african subregion will be able to use a single currency called eco. West africa bloc adopts eco as name of planned shared. The economic community of west african states ecowas was established in 1975 with the formal aim of promoting economic cooperation between 15 countries with different historic trajectories colonisation, language, and administrative cultures yet sharing similar socioeconomic conditions. Ecowas member states now have an effective and efficient telephony network that directly connects all the west african countries. The economic community of west african states ecowas was founded in may 1975 as a regional group of countries in the west african subregion. The economic community of west african states ecowas is made up of fifteen member countries that are located in the western african region. Meanwhile, the feasibility of a potential monetary union for a block of countries is usually evaluated by weighing the benefits and costs of joining a currency union mundell, 1961 and mckinnon, 1963.
Potential benefits to and ecowas monetary union include. Countries, capitals and currencies africa country capital currency 1 algeria algiers algerian dollars 2 angola luanda kwanza 3 benin portonovo cfa franc 4 botswana gaborone pula 5 burkina faso ouagadougou cfa franc 6 burundi bujumbura burundi franc 7 cameroon yaounde cfa franc 8 cape verde praia cape verdean escudo. Jun 30, 2019 west africa bloc adopts eco as name of planned shared currency. This result shows that most of the countries are making.
There are also export tariffs but these are uncommon. Monetary union in west africa international monetary fund. Economic community of west african states ecowas from an ecowas of states to an ecowas of peoples. Treaty of the economic community of west african states, done may 28, 1975, reprinted in 14 intl legal materials 1200 1975 hereinafter cited as ecowas treaty. Trade policy reform, regional integration and export. The community was founded on the 28th of may, 1975 when some of the countries in west africa came together in lagos to sign the treaty of lagos. Countries, capitals and currencies questions regarding countries, capitals and their currencies are quite common in many of the major competitive exams such as ssc, upsc, ibps, rrb, ias and banking exams. The role of the cfa franc in the economic integration of the. In pursuance of this objective, the authority adopted, at their july 1987 summit in abuja, decision adec. Ecowas leaders met on december 21, 2019, in abuja six months after adopting the name eco for the future single currency project. Exchange rate regimes in most of the ecowas countries were also liberalized.
Regional integration and nontariff measures in the economic. The economic community of west african states, also known as ecowas cedeao in french, is a regional political and economic union of fifteen countries located in west africa. First, the countries that are not members of the franc zone will set up their own monetary zone called the west african monetary zone wamz in, adopting a common currency, the west african currency unit. Pdf why and when to introduce a single currency in ecowas. Through the use of gravity model, this study endeavours to apprehend factors affecting the importance of the economic community of west african states ecowas intracommunity trade flows.
Since the signature of the cotonou agreement in 2000, ecowas countries are also engaged in the negotiations for an economic partnership agreement epa with the european union. On the other hand, guinea bissaucfa franc and cape verdeescudo, the two portuguese countries use. Economic community of west african states wikipedia. On the way to a single currency for ecowas countries. West african nations rename common currency, sever its. The economic community of west african states ecowas. Dating back to precolonial times, west africans have been among the worlds most mobile populations although much of the migration had been intraregional. In fact, the member countries of ecowas have serious externallyinduced monetary problems that no country alone can resolve. Seven of the fifteen countries with colony background from france used franc as a common currency, while with english speaking countries used their own currency. Jul 12, 2019 look, eight of the ecowas countries benin, burkina faso, guineabissau, ivory coast, mali, niger, senegal, and togo already use a shared currency.
The economic point of view mentions that the west african region comprises 16 countries and two islands. The economic community of west african states ecowas is an economic group or community of african countries located in west africa. The import of goods and services for member countries of ecowas is as presented in fig. From the geographical point of view, the region is built of 19 countries and two islands. The per capita income levels of the ecowas states are exceedingly low compared to the developed countries. They plan to achieve this goal through regional trade liberalization. An evaluation of the viability of a single monetary zone in. Jul 01, 2019 eight ecowas countries benin, burkina faso, guineabissau, ivory coast, mali, niger, senegal, and togo currently jointly use the cfa franc. Indeed, ecowas is one the five regional pillars of the african economic community aec. Understanding ecowas trade policy and trade facilitation. This objective is to create a common currency for all west africa states. Can the monetary integration of ecowas improve intra.
On june 29, 2019, the leaders of the economic community of west african states ecowas formally adopted the name of eco for their project of the single currency. Four countries in ecowas have two major challenges. The franc zone, a tool of french neocolonialism in africa. As many countries are not strong enough on their own to cope with the rapid changes in the global economy, groups of countries use regional integration to. The institutional framework for ecowas monetary union. In the 17th century ad, european countries scrambled for and partitioned africa. Morocco applied to join the economic community of west african states ecowas in february 2017. The economic community of west african states ecowas is a regional organisation of 15 west african countries established on 28 may 1975. There are eighteen 18 countries geographically located in west africa but only fifteen 15 out of these countries are members of ecowas.
Its main goal is the promotion of the economic integration among its members. Ceo, alpha african advisory, sanyade okoli looks into what ecowas countries stand to benefit from the single currency. West african states mired in controversy over eco currency. Events 31 mar 2021 17 may 2021 abuja regional competitive bidding for the rehabilitation of the new court of justice in abuja. Pdf why and when to introduce a single currency in. The signatories of the treaty are the republics of.
Why and when to introduce a single currency in ecowas. To this end, various activities such as preferential treatment of intraregional trade, transport and communication projects, and monetary. These are basic current affairs knowledge that should be at your fingertips. In todays international monetary context, a single currency in ecowas will offer west african countries the opportunity to pool their monetary resources in order to pursue their common and individual objectives. Every year at least 12 questions in the general knowledge section. It has given nations the options of cooperation and competition. Eco currency, monetary union, ecowas, central bank. West african nations rename common currency, sever its links. The implications of the new ecowas currency on travel between. Such countries as equatorial guinea, chad and cameroon do not enter the list of ecowas countries economic community of west african states. In addition, the general lack of trust and transparency between countries makes the task of ecowas even more delicate.
The role of the cfa franc in the economic integration of. Vi the benefits and costs of a common currency for west africa. Mati, civcir and ozdeser ecowas common currency 91. West african countries have continued to open the mobile market for competition, and today there are more than 320 million mobile subscribers in the economic community of west african states ecowas region alone.
Ecowas has announced that it will begin using a single currency for regional trade in 2020. Dec 21, 2019 officials from west african countries attend the 56th ordinary session of the ecowas authority of heads of state and government in abuja, nigeria, dec. This will also serve to enable the frenchspeaking west african region to abandon the cfa franc for the eco, as part of a process. Foreign currency debt and exchange rate regimes in the. Nigeria and cote divoire virtually eliminated exchange rate premiums, where. The eco is the proposed name for the common currency that the west african monetary zone wamz plans to introduce in the framework of the economic community of west african states ecowas. Economic integration and the common currency agenda of. Giro, 2019 submitted from their studies, ecowas countries are. The six countries committed themselves to reducing central bank financing of budget. The members of the community, hereinafter referred to as the member states. However, its bid has stalled for geopolitical, legal and political reasons in the face of opposition from powerful and protectionist west african economic actors. Evidence from economic community of west african states ecowas.
1479 212 1493 566 488 1701 1070 381 856 1670 387 640 1541 119 272 1811 1291 1857 1063 442 1531 1489 407 1549 1656 1426 581 1627 11 1278 52 1436 273 1034 545 1276 957