Business News of Friday, 17 January 2020
Source: www.citibusinessnews.com
2020-01-17
The meeting which had in attendance Ghana’s Finance Minister Ken Ofori-Atta
The Finance and Economy Ministers, as well as Governors of central banks in West Africa, have denounced the recent decision by the Ivorian President, Alassane Ouattara, to rename the CFA franc as the ECO — the name of the single currency planned for the sub-region.
A communique issued after an extraordinary meeting of the group in Abuja described Mr. Ouattara’s pronouncement as “unilateral” which was made without recourse to any relevant authority within the ECOWAS structure.
“The meeting noted with concern, the declaration by His Excellency Alassane Ouattara, Chairman of the Authority of Heads of State and Government of the West Africa Economic and Monetary Union (WAEMU) on December 21, 2019, to rename the CFA franc as ECO by 2020,” the group said.
The West Africa Monetary Zone (WAMZ) Convergence Council, which is to ensure that a number of macroeconomic criteria are met by member countries for the introduction of the ECO, said Mr. Ouattara’s pronouncement is not inline with Authority of Heads of State and Government of ECOWAS for the adoption of ECO as the name of an independent ECOWAS single currency.
The meeting which had in attendance Ghana’s Finance Minister Ken Ofori-Atta and Governor of the Bank of Ghana, Dr. Ernest Addison, further called for an extraordinary meeting of the Authority of Heads of State and Government of the WAMZ member countries to discuss the Ivorian President’s unilateral decision.
Ouattara’s decision
The Ivory Coast’s President Alassane Ouattara announced during a news conference with French President Emmanuel Macron last December that a deal has been agreed with France to rename its CFA franc the Eco and cut some of the financial links with Paris that have underpinned the region’s common currency.
Under the deal, the Eco will remain pegged to the euro but the African countries in the bloc won’t have to keep 50 percent of their reserves in the French Treasury and there will no longer be a French representative on the currency union’s board.
Critics of the CFA have long seen it as a relic from colonial times while proponents of the currency say it has provided financial stability in a sometimes turbulent region.
“This is a historic day for West Africa,” Ivory Coast’s President Alassane Ouattara said.