Morocco Faces Decision on Joining ECOWAS ’Eco’ Currency by 2020

On Saturday, June 29, 2019, in Abuja, the Heads of State and Government of ECOWAS decided to adopt a common currency, the "Eco", in West Africa, according to the final communiqué of the meeting which brought together the 15 member countries of the Organization. The same source indicates that this currency will be adopted gradually with the countries that meet the convergence criteria, in particular with regard to inflation and the budget deficit.

It should be noted that the principle of a flexible exchange rate regime and a monetary policy focused on inflation control have also been formally adopted. The choice of the name "Eco" for this currency has been applauded because it respects the pre-established criteria. In this regard, the ECOWAS Bank for Investment and Development (EBID) is involved in the financing plan for community development investments.

Since 1975, Morocco has maintained historical relations, trade agreements and trade and tariff conventions with these 15 states which group together 340 million consumers, with various currencies.

According to a study, Morocco’s expressed willingness to join ECOWAS as a full member presents opportunities but also challenges, particularly in terms of investment and economic cooperation. However, barriers are emerging in Nigeria, Côte d’Ivoire and Senegal with the concerns of the Patronat, stakeholders and opinion leaders due to the entry, without customs duties, of more competitive Moroccan products, as well as European, Turkish or American, due to the Free Trade Agreements and the power of the Dirham.

ECOWAS will build more than one on its vocation to become a free trade and free movement area, with or without Morocco’s participation in the "Eco", the communiqué notes.