The Launch of the New West African Currency Delayed
We reported early last year on the plan to launch a new currency to replace the CFA franc used by several countries in West Africa. This now may not happen for at least 5 years due to the financial crisis caused by COVID. Nations in the West African bloc have agreed to work towards reducing their budget deficits to below 3% of GDP, a measure of the value of their economies. Other countries which do not use the CFA franc, like Nigeria and Ghana, are also interested in adopting the new regional currency, but Ghana does not want the eco pegged to the euro, like the CFA franc, and Nigeria wants the former French colonies to break all financial ties with Paris. The creation of a new pan-African currency is also considered to be a positive move towards the AfCFTA – President Ramaphosa floated the idea in 2018. This delay will be a disappointment.
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