According to reports reaching us,its been confirmed that due to the inability of some countries within the West African Monetary Zone to meet up with the macroeconomic convergence criteria which is currently threatening the January 1, 2015 take-off of the single currency regime for the sub region.
The development was confirmed on Monday during the 37th meeting of the Technical Committee of the West African Monetary Zone, which was held at the headquarters of the Central Bank of Nigeria in Abuja that the inability of some of the countries to meet up with the criteria had made the ECOWAS authority of Heads of State and Government to adopt the creation of a fiscal union.
There and then, the ECOWAS authority also approved the reduction of the macroeconomic convergence criteria from 11 (four primary and seven secondary criteria) to six (three primary and three secondary criteria).
The Acting Director, Multilateral Surveillance, ECOWAS Commission, Dr. Nelson Magbagbeola, said during the opening session of the meeting that the commission had also revised the road map with clear responsibilities assigned to the regional institutions involved in the monetary integration process.
As such,The three primary criteria that will now be used are budget deficit of not more than three per cent; average annual inflation of less than 10 per cent, with a long-term goal of not more than five per cent by 2019; and gross reserves that can finance at least three months of imports.
The three secondary convergence criteria that have now been adopted by the ECOWAS authority are public debt/Gross Domestic Product of not more than 70 per cent; central bank financing of budget deficit of not more than 10 per cent of the previous year’s tax revenue; and nominal exchange rate variation of plus or minus 10 per cent.
well that's just the gist,but the question is would this currency has higher value compare to dollar or euro,if not what is the essence?
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