The Association of African Central Banks is warning that the goal of attaining a single currency status in West Africa will be a mirage. It believes that the only solution to the problem is by diversifying the economies of the various countries in the Wet African Monetary Zone.
Various attempts by West Africa to introduce a common currency known as the ECO has suffered various setbacks with the recent one being the outbreak of Ebola in three member countries. It is currently unclear if the countries will now meet the convergence criteria for the currency to take off in 2020.
Papa Lamine Diop is the Executive Secretary of the Association of African Central Banks was speaking to Africa Feeds at the end of the 2017 Continental Seminar of the Association of African Central Banks in Accra, Ghana. The three day forum was on the theme Credible Communication Strategies for Central Banks in the Framework of Monetary Policy and Financial Stability.
The forum was attended by a representative from the International Monetary Fund and the European Central Bank. The meeting among other things discussed Central banks communication in a crisis environment: lessons learned from the recent financial crisis, Monetary Policy Credibility and communication strategies: dynamics, structure and measurement of the impact on monetary and financial stability.
About AACB
The idea of an Association of African Central Banks was first introduced on May 25, 1963, at the Summit Conference of African Heads of State and Government held in Addis Ababa, Ethiopia.
In this regard, African Heads of State and Government unanimously agreed to set up a preparatory Economic Committee to study a large range of monetary and financial issues, in collaboration with Governments and in consultation with the Economic Commission for Africa (ECA).
Source: Africafeeds.com / Fred Dzakpata
