The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that the ECO currency of ECOWAS will enhance financial stability and economic cooperation among its 15 member countries and is a road map to drive economic stability, growth, and prosperity in Nigeria.
He, therefore, encouraged the concerted efforts of Nigeria in collaboration with ECOWAS to foster regional stability, economic growth, and diplomatic relations, ensuring sustainable development and mutual prosperity.
However, because there is no success without its challenges, Edun highlighted the possible challenges in leveraging ECO currency for economy prosperity, citing security concerns, inflation, and global economic disruptions as major hindrances.
The ECO currency aims to bring together the region’s payment systems, making financial transactions easier and helping economic stability. It also tries to boost price stability, cut down on currency exchange risks, and make the economic bloc more appealing to foreign direct investment (FDI) by making it stronger.
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It should be noted that ECOWAS was set to launch the ECO currency in 2020 to enable a unified-based currency to enhance financial stability and economic cooperation among its 15 member countries. However, since its development, the ECO currency project has faced the following changes:
Alliance of Sahel States (Burkina Faso, Mali, and Niger) withdrawal from ECOWAS due inflation and sanctions imposed following a series of military coups, double-digit inflation and record-high public debt and broader regional instability in Nigeria and Ghana.
Despite these setbacks, some analysts see their exit as an opportunity to streamline the implementation of the ECO currency, potentially reducing political and economic hurdles that have previously delayed progress.
