A Unified Currency: UEMOA Adopts Eco, Drops CFA franc

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Monday, January 06, 2020 / 10:05 AM / United Capital Research / Header Image Credit: Daily Trust


In late Dec-19, West African Economic and Monetary Union (also known by its French acronym, UEMOA) adopted the Eco as its official currency ahead of the Jun-20 timeline set by ECOWAS. This was as they cut some of their financial ties with France that had underpinned the region's previous common currency, CFA franc.


Specifically, under the new deal, the Eco will remain pegged to the euro but the African countries in the bloc would not have to keep 50.0% of their reserves in the French Treasury and there will no longer be a French representative on the UEMOA board. However, the changes will only affect the West African form of the currency as the Central African counterpart - Economic and Monetary Union of Central Africa (CEMAC), continues to adopt CFA franc as their official currency.


The adoption of the Eco by  UEMOA is laudable, bringing recent agitation against the usage of euro-pegged shared currency to an end. Interestingly, Ghana has indicated interest in adopting the Eco while Nigeria which accounts for 76% of  total trade in the ECOWAS region is yet to a stand on joining the new currency union.

 

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Looking Forward

 

Angola

Dec-19 Net Reserves - January 16th

 

Ghana

Dec-19 CPI YoY - January 15th

 

Morocco

Dec-19 CPI YoY - January 10th

 

Nigeria

Dec-19 Markit/Stanbic IBTC Bank PMI - Jan 6th

 

South Africa

Dec-19 Gross Reserve - January 8th

 

Zambia

Dec-19 Markit/Stanbic IBTC Bank PMI - Jan 6th 

 

 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


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Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.
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