Okonjo-Iweala Cautions against Hasty Inauguration of ECOWAS Currency

Dr Ngozi Okonjo-Iweala, minister of Finance, has cautioned the Council of Ministers and Governors of Central Banks of the West African Monetary Zone against a hasty launch of the monetary union for the sub-region.

The warning was coming barely 24 hours after it emerged that the January 1, 2015 take-off date for the use of a single currency for the sub-region was no longer feasible.

The six countries that made up the WAMZ are Nigeria, Liberia, Sierra Leone Gambia, Ghana and Guinea.

The single currency-Eco was first planned to be introduced in 2003, but this was postponed several times, to 2005, 2010 and 2014.

At a meeting of the Convergence Council of Ministers and Governors of West Africa on 25 May 2009 the start of the currency was rescheduled to 2015 due to the international economic crisis.

Speaking in Abuja at the opening session of the 34th meeting of the convergence council ministers and governors of central banks of WAMZ, Okonjo-Iweala said rather than rushing to launch the monetary union, the council should consider a sustainable take-off that would stand the test of time.

She urged the council to consider developments in the Euro zone and ensure that the lessons learnt are integrated into its recommendations in order to avoid the pitfalls that bedeviled the European monetary zone.

She said, “As you begin your deliberations I will like you to take cognizance of the recent developments in the Euro zone and ensure that the lessons learnt are integrated into the recommendations that you would make so as to avoid the pitfalls that bedeviled that monetary zone.

She said, “I urge you all to work hard towards meeting the set target date. We must not forget that the most sacrosanct objective in this endeavor is not a hasty launch of a monetary union but an enduring and sustainable one that will stand the test of time when it eventually take off.

“It may only take sometime to launch when we are comfortable that the economic fundamentals to achieve a strong monetary union are in place.”

Kadre Ouedraogo, president, ECOWAS Commission, said the zone had adopted a revised roadmap with clearly defined responsibilities to the regional institutions involved in the monetary integration process.