Home BUSINESS AFRICA: The FCFA will soon become “ECO”.

AFRICA: The FCFA will soon become “ECO”.

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The CFA zone will disappear from 2020, according to the proposals of Saturday December 21, 2019 in Abdijan by the Ivorian presidents Alassane Ouattara and French Emmanuel Macron. France is withdrawing from the management bodies of the CFA which can therefore operate its transformation into an eco zone. However, the implementation dates are not clearly defined.

Officially, the new monetary agreement signed between Paris and the countries of the West African Economic and Monetary Union (WAEMU) zone takes effect immediately. In reality, the implementation of this long-awaited decision by activists will begin in 2020, after June, at the time of the annual reviews. France will then leave to this part of Africa the possibility of managing its own currency.

If the operating principles of eco are acquired, it now remains to address the techniques of purification of the questions. When will the new tickets be printed? When will they take effect? In principle, it will take time before you can hold the eco in your hand. If the former West African CFA zone will be involved in this revolutionary project, when will the other ECOWAS countries (Economic Community of West African States) join the eco zone and adopt this currency?

Until now, the ECOWAS the date selected was 2020, but this is no longer certain indicated on Saturday December 21 the Minister of Finance of Nigeria, Ngonzi Okonjo-Iweala have more so that within the ECOWAS the countries do not respect the convergence criteria sufficiently.

These criteria, such as the inflation rate or the budget deficit, should normally be aligned across all countries to ensure that the common currency is stable. The heads of state of this area therefore have their work cut out for them. But what is hoped is that the transformation of the CFA zone into an eco zone gives new impetus to all the countries of the ECOWAS.