- Dr. Olorunsola Olofeso revealed that WAMZ is unlikely to achieve a single currency soon due to significant declines in convergence indicators
- Olofeso noted that as of June 2023, all WAMZ member states fell short of meeting the primary convergence criteria
Due to significant declines in convergence indicators, the West African Monetary Zones (WAMZ) is unlikely to achieve its goal of a single currency anytime soon. Dr. Olorunsola Olofeso, Director-General of the West African Monetary Institute (WAMI), revealed this during the 51st meeting of the Convergence Council of WAMZ held in Abuja over the weekend.
Olofeso highlighted that as of June 2023, all WAMZ member states fell short of meeting the four primary convergence criteria. The zone’s performance score dropped to 29.2 percent, compared to 41.7 percent in the same period in 2022. He noted that medium-term projections on macroeconomic convergence indicate none of the member states will sustainably meet all criteria for the remaining years of the ECOWAS Single Currency Roadmap (2021-2027).
Olayemi Cardoso, Governor of the Central Bank and Chairman of the Committee of Governors of WAMZ, chaired the meeting and outlined directives to enhance monitoring and analysis. These directives include the presentation of periodic comprehensive macroeconomic and convergence reports at statutory meetings starting in mid-2024. Additionally, WAMI is tasked with updating its database with current and reliable statistics for policy analysis and organizing seminars to address macroeconomic policy issues.
The statements from Olofeso and Cardoso reflect a sober assessment of the challenges facing the implementation of the ECOWAS single currency, underscoring the need for concerted efforts to address the existing barriers and enhance regional economic integration.