IMF says ready to support implementation of Eco

The International Monetary Fund (IMF) said it is ready to engage with the West African authorities and to support the implementation of the planned new currency called the Eco.

Kristalina Georgieva, managing director of the IMF, in December 21, 2019 issued a statement on the reform of the West African Economic and Monetary Union (WAEMU)’s CFA franc framework.

She said, “I welcome the reforms to the WAEMU’s CFA franc currency arrangement that were announced by Presidents Ouattara and Macron in Abidjan. They constitute a key step in the modernization of long-standing arrangements between the West African Economic and Monetary Union and France.

Georgieva said the announced measures build on WAEMU’s proven track record in the conduct of monetary policy and external reserve management. In recent years, the WAEMU has recorded low inflation and high economic growth, the fiscal situation has improved, and the level of foreign exchange reserves has increased.

The reforms also maintain key elements of stability that have served the region well, including the fixed exchange rate with the euro and the guarantee of unlimited convertibility provided by France, she said.

“The IMF stands ready to engage with the regional authorities, as needed, and to support the implementation of this important initiative.”

However, Zainab Ahmed, Minister of Finance, Budget and National Planning, sees the possibility of establishing a common economic block and adopting a single currency- being proposed as the ‘Eco’ – by the Economic Community of West African States (ECOWAS) Member countries as uncertain.

The uncertainty stems from the inability of member states to meet a set of convergence criteria before the Monetary Union can be established.

To achieve a common monetary integration programme required each member country to comply with a set of four primary and six secondary convergence criteria to ensure a stable macroeconomic environment.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.