Monetary union A must for West Afric

Story: Boahene Asamoah
THE Director-General of the West African Institute for Financial and Economic Management (WAIFEM), Dr Chris Itsede, has called on member states of the West African Monetary Zone (WAMZ) to enter into monetary co-operation under a framework of currency convertibility and macroeconomics policy harmonisation.
That, he said, “if actualised, will pave the way for the realisation of the ultimate goal of a single currency and centralised monetary authority”.
Speaking at the opening workshop on Practical Aspects of Economic and Financial Analysis for journalists in Lagos, Nigeria, Dr Itsede stated that the rising trend of globalisation strongly underscored the urgent need for WAMZ member states to enter into a monetary co-operation.
The workshop was to upgrade the knowledge and skills of editors, journalists and other media practitioners from West Africa on economic and financial policy formulation, analysis, performance, monitoring and reporting.
He observed that the issue of national currencies for intra-regional trade finance in West Africa had generated debate on the issue for some time and called on policy makers to hasten the process of currency convertibility.
He mentioned some of the benefits in formalising the use of WAMZ currencies in intra-regional trade transactions as the opportunity to trade in a bigger markets, reduction in transaction costs and the elimination of exchange rate risks among participating countries.
The director-general, however, stated that while the informal sector was actively involved in the free convertibility of regional currencies, the bulk of intra-regional trade was still based on cash transactions.
“This form of trade has little prospects of meeting the objective of a single economic space in the sub-region,” he stated.
On the single monetary zone, he said, “while the WAMZ project is on course to materialise in December 2009, intra-WAMZ trade can be promoted, through the use of local currencies in intra-regional transactions.”
Dr Itsede stated the latest progress report that indicated noticeable improvement in macroeconomic convergence in the region, adding that two countries, Nigeria and The Gambia, met all the four primary convergence criteria, while Ghana, Guinea and Sierra Leone met two, one and three of the primary criteria respectively.
The director-general of WAIFEM said “the press plays a critical role of informing and educating the public about economic and financial policy choices and transmitting feedback to policymakers on the impact and effects of their policies in order for a corrective action to be taken”. Dr Itsede stated.
Twenty-nine middle, senior and executive level officials involved in editing, reporting and producing macroeconomic and financial news from the public and private sectors of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone attended the one-week workshop.