From Aidoghie Paulinus, Abuja
Speaker of the Economic Community of West African States (ECOWAS) Parliament, Sidie Mohamed Tunis, has said that lack of single currency is hampering intra-regional trade in the sub-region.
The development, according to Tunis, currently stands at 10 percent margin and is very low for a region of 400 million.
Tunis, while speaking during the opening of the Fifth Legislature of the ECOWAS Parliament in Bissau, Guinea Bissau, noted that several reasons were responsible for the impediment.
Tunis said: “As you are aware, intra-regional trade is relatively low in the ECOWAS region. According to statistics, it represents about 10 percent of both exports and imports of member states.
“Several reasons have been put forward to explain these low levels of intra-community trade. Among these, the lack of a single currency among ECOWAS member countries has been identified as a major obstacle and a factor that aggravates transaction costs. In addition, efficient payment systems are a stimulus for intra-regional trade.
“Having identified these challenges, and to increase the volume of trade in the region, the ECOWAS Authority of Heads of State and Government decided to accelerate the process of creating a single currency, through the adoption of the convergence pact and a new roadmap for the launch of the single currency by 2027. It is gratifying to state that this decision by the Heads of State, has led to significant progress in recent years.”
Tunis further said that following the efforts of the ECOWAS Heads of State and Government, the ECOWAS Parliament, through the parliamentary seminar, saw it befitting for members to be informed on the policies and programmes of the community, namely the state of progress of the single currency programme, as well as the project for the development of the inter-bank payment system.
“The Parliament also wishes to contribute fully to the process of creating the single currency, by ensuring effective monitoring of the community bodies and institutions in charge of this programme and by promoting the support of the populations of which we are, in essence, the closest representatives.
“This parliamentary seminar should, therefore, enlighten us on the conditions for strengthening convergence and macroeconomic stability in the region.
“It would also provide a greater insight into the coordination of economic policies, and the development of a payments system for the member states to facilitate their economic integration. Furthermore, this seminar would address all the other challenges we are determined to meet, to achieve the single currency by 2027, as announced,” Tunis also said.
In his remarks, the President of the Republic of Guinea Bissau, Umaro Sissoco Embalo, threw his weight behind the actualisation of the adoption of the single currency within the ECOWAS region.
Embalo said the adoption of a single currency will improve the well being of the people of the region, particularly in encouraging and stimulating the development and maintaining the friendship, solidarity and cooperation among countries and populations.
Embalo said: “We are creating a new economy which is also financial and commercial within ECOWAS. The money system that we want to establish will encourage or stimulate our development and maintain the friendship, solidarity and cooperation among our countries and populations.”
While saying that the process should be conducted very conclusively, Embalo added that there are various challenges ahead which was why the introduction of the common currency was very important.