Business, Nigeria

Single currency within the ECOWAS: possible up from January 2015.

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This was the decision taken by the technical committee on the works of a meeting organized last 14th July in Lagos, Nigeria.

As in 2010, it was noticed that most of the countries could not be in adequacy with the convergence criteria necessary for the implementation of such a regime.

The technical committee had to amend from 11 to 6, the points of convergence necessary for the implementation of this regime of single currency.

Only three points are henceforth essential and in certain cases, they were lightened.

The convergence also requires form the countries to show a public deficit of less than 3 %, a level of inflation lower than 10 % and less than 5 % on by the year 2019 and finally, outside reserves that can support 5 months of imports.

Three other more flexible criteria are a 70 % ratio debt / GDP, advances of finance of the Central Banks financing the budget deficit at not more than 10 % and a variation of the nominal exchange rate at 10 % maximum.

 Original text by: Blaise AKAME

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