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Saturday, July 6th, 2024
(AFRICAN EXAMINER) – The Economic Community of West African States (ECOWAS) has been working towards establishing a single currency, known as the ECO, to facilitate economic integration and improve trade among member states.
The endorsement by Nigeria, the region’s largest economy, is a significant step towards the actualization of this long-anticipated monetary union.
The introduction of the ECO aims to reduce transaction costs, eliminate exchange rate uncertainties, and promote price stability within the region.
This move is also expected to strengthen the economic ties between ECOWAS countries and enhance the region’s competitiveness in the global market.
The successful implementation of a single currency like the ECO will require member states to meet certain convergence criteria, including inflation rate targets, budget deficit limits, and stable exchange rates.
While the road to achieving a common currency is challenging, Nigeria’s support is a crucial milestone that could accelerate the process and encourage other member states to commit to the necessary economic reforms.
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