Nigeria delays launch of West Africa's Eco-Currency
What's in the news?
Nigeria has asked for the postponement of the launch of West Africa’s single currency, the Eco. The Eco was scheduled to be launched this year after two decades of planning.
Nigeria's concern is expressed in a tweet sent by the office of the presidency, stating the country’s position on the ECO Currency is that the convergence criteria have not been met by majority of the countries involved. Consequently, there has to be an extension of time on the takeoff of the single currency the tweet concludes.
Meeting the convergence criteria has been a glass ceiling in the last 2o years' existence of this plan.
The countries involved have not been able to meet all the criteria at the same time.
What has resulted in the delay?
These standards involve maintenance of the price stability by recording a single-digit earned period inflation reducing the ration of the budget deficit in each country, limiting central bank financing of government deficit and maintaining a sufficient level of gross foreign exchange reserve. The purpose of the single currency is to break down trade barriers and to increase cross border trade.
Fears are that the central banks will be rendered powerless to regional banks and a France suspected interference.