A consensus on the currency was reached during ECOWAS's 65th Ordinary Session, as confirmed in the communiqué from the 66th ordinary session of the Authority of Heads of State and Government held in Abuja on Sunday.
The launch of the currency, initially postponed in 2020 due to the Coronavirus pandemic, is now scheduled for 2027.
The ECOWAS authority has urged central banks and member states to promptly take the necessary actions to fulfill their financial contributions for the operationalization of these institutions once the effective launch date for the ECOWAS single currency is determined.
Additionally, there is a call for increased efforts to ensure that the timelines set for the establishment and operationalization of the institutions required for the ECO's launch are adhered to.
The ECOWAS currency aims to reduce trade costs and enhance intraregional trade, which is currently impeded by the use of various national currencies that lack convertibility within ECOWAS.
The ECO is anticipated to enhance the economic prosperity of ECOWAS member countries.
During a transitional period, the national currencies of member states and the common currency are expected to coexist.
Proposals have been made for the initial phase of implementation to feature two distinct ECO zones, where countries would peg their national currencies to the ECO.