There are clear indications that the goal of establishing a single currency within the West African Monetary Zones (WAMZ) will face significant delays due to a notable decline in convergence indicators,Daily Trust reports.
Dr. Olorunsola Olofeso, the Director-General of the West African Monetary Institute (WAMI), revealed this during the 51st meeting of the Convergence Council of the WAMZ held in Abuja over the weekend.
He highlighted, “An assessment of Member States’ performance up to June 2023 shows that none of the WAMZ Member States met all four primary convergence criteria. The overall performance score for the zone dropped to 29.2 percent, a decrease from 41.7 percent recorded during the same period in 2022.”
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Olofeso continued, “Medium-term projections on macroeconomic convergence, based on the multi-year national macroeconomic convergence and stability programs of the Member States, indicate that none of the WAMZ Member States will sustainably meet all four primary convergence criteria for the remaining three consecutive years (2024-2026) of the ECOWAS Single Currency Roadmap (2021-2027).”
Chairing the Committee of Governors of WAMZ, Olayemi Cardoso, the Central Bank governor, stated that the committee has instructed the Director-General to deliver a comprehensive macroeconomic and convergence status report at WAMZ Statutory meetings, starting from mid-year 2024.
Additionally, Cardoso mentioned, “The Committee of Governors has tasked WAMI with updating its database to include current and reliable statistics for policy analysis. Furthermore, it has called for the organization of periodic seminars addressing pertinent issues aimed at providing solutions to macroeconomic policy challenges faced by member states.”
