Central bank governors meet to finalize West Africa's single currency

Central bank governors from 12 West African nations are meeting in Liberia's capital, Monrovia, to finalize plans for the launch of the region's long-delayed single currency, the ECO, scheduled for 2027.

The three-day meeting, running from Thursday to Saturday, marks an important step in the Economic Community of West African States' ambition to deepen economic integration among its 12 member countries.

The initiative mirrors aspects of the European Union model, including the introduction of a single currency and a unified national identification card, building on the existing ECOWAS' passport framework.

The first phase of implementation is expected to involve Liberia, Nigeria, Ghana, Sierra Leone, Guinea, and The Gambia.

The meeting follows a previous ECOWAS summit held in December 2025, in Abuja, Nigeria. During the meeting, regional leaders reaffirmed their commitment to launching the ECO in 2027, urging member states to adopt economic policies necessary to meet the bloc's macroeconomic convergence criteria. They also called for agreement on institutional arrangements essential for the currency's rollout.

To qualify for the monetary union, member states must meet a set of economic targets.

These include maintaining a budget deficit of no more than 3 percent of GDP, keeping annual inflation below 10 percent, and limiting central bank financing of budget deficits to no more than 10 percent of the previous year's tax revenue. Countries must also hold gross external reserves equivalent to at least three months of import cover.

The ECO is expected to operate under a flexible exchange rate regime, with price stability anchored by a defined inflation target serving as one of the union's central objectives.

The project has faced repeated delays in recent years, largely because many member states have struggled to meet these convergence benchmarks.

Despite the hurdles, regional officials struck an optimistic tone in Monrovia during the ongoing meeting.

Boima Kamara, director general of the West African Monetary Agency, told delegates that while the path to monetary union remains demanding, success is attainable with decisive and pragmatic action.

"The climb to convergence and subsequent launch of the ECO is just a year away. The launch day may seem steep, but it is not insurmountable," Kamara said, emphasizing that the region's commitment to economic integration and monetary cooperation is strengthening.

He noted that renewed momentum within ECOWAS' institutions and member states is driving progress under the Monetary Cooperation Program, but cautioned that success will depend on practical decisions aligned with the region's socioeconomic realities.

"Our community yearns for an economically and monetarily integrated region where peace, stability, and shared prosperity are enjoyed by all," Kamara said.

"We have the resources, capacity, intelligence, and collective will to deliver on this mandate."

Liberia's Central Bank Executive Governor Henry F. Saamoi said the meeting is a testament to ECOWAS' collective commitment to monetary integration.

Saamoi said that ECOWAS' economies recorded growth at 4.8 percent in 2025, up from 4.3 percent in 2024, with inflation moderating significantly and fiscal positions improving across member states.

He revealed that four member states met all four primary convergence criteria in 2025, compared to two in 2024; adding that progress has been made in reserve pooling and capitalization of the proposed Central Bank of West Africa.

As the 2027 deadline approaches, the outcome of the Monrovia meeting may prove pivotal in determining whether West Africa can finally deliver on its decades-long ambition to establish a unified currency and deepen regional integration, delegates at the meeting said.