West Africa is made of two communities which are the ECOWAS which consists of all west African states and the UEMOA made up of the UEMOA are Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo all having a single currency, the CFA Franc, which is pegged to the euro through the French Treasury. Last month, France’s Council of Ministers officially passed a bill that ratified a reform of the monetary agreement that bound the French government to the eight UEMOA member states.The Eco will remain pegged to the euro and will be backed by the French Treasury. The euro will guarantee the Eco’s convertibility and stability, with the Treasury remaining as guarantor for all eight UEMOA states.”
The ECOWAS aim of creating a new currency means everyone had to give up its current currency and embrace the new one, according to the initial agreement, the UEMOA countries were to withdraw their currency reserves from the French central bank before adopting the new currency the Eco.In the first phase, countries with their own currencies (Gambia, Ghana, Guinea, Nigeria and Sierra Leone) were to launch the Eco.In a second phase, the eight UEMOA member countries that have in common the CFA Franc will be covered by the Eco by this is not the case as the Nigerian President revealed.
Nigerian President Muhammadu Buhari Nigeria’s president expressed concern Tuesday over the decision of some West African nations to replace their currencies with the Eco ahead of the rest of the member countries of the Economic Community of West African States (ECOWAS). This will hereby link Nigerian banks to the French Treasury as the others which may not be what Nigerian seeks in a single currency
Nigeria’s leader uneasy over new West African currency ‘We must proceed with caution, comply with the agreed process of reaching our collective goal,’ says President Buhari. cover new West African currency. President Muhammadu Buhari made the comments at an extraordinary virtual summit of the Authority of Heads of State and Government of the West African Economic and Monetary Union (UEMOA) hosted by the West African Monetary Institute, Accra Ghana. he continues by adding ”It gives me an uneasy feeling that the UEMOA Zone wishes to take up the Eco in replacement for its CFA Franc ahead of other ECOWAS Member States. to him this is either a way of deceiving them into a French controlled Economy or a lack of trust in the institution and it’s proceedings as he puts it clear that ”It‘s a matter of concern that a people with whom we wish to go into a union are taking major steps without trusting us for discussion,” in a series of follow up tweets. Buhari said his nation fully supports and is committed to the monetary union, ”but we must do things properly and ensure absolute compliance with the set standards.” We must proceed with caution and comply with the agreed process of reaching our collective goal while treating each other with utmost respect. Without these, our ambitions for a strategic Monetary Union as an ECOWAS bloc could very well be in serious jeopardy,” and makes it clear that Nigeria may exit the Union if things are not done in the right way.”We cannot ridicule ourselves by entering a union to disintegrate, potentially no sooner than we enter into it. We need to be clear and unequivocal about our position regarding this process,” he added. The French president has paid considerably high number of visits to west African countries before the revelation by Buhari. Dagostunion website contains only a portion of the news stories offered to subscribers in the blog and in summarized form. Please contact us and subscribe for more.