Sources familiar with the discussions said the meeting—held about two weeks ago in the Liberian capital—reviewed progress made by member states of the Economic Community of West African States (ECOWAS) in meeting key economic benchmarks required for the introduction of the common currency.
Progress on Economic Benchmarks
According to officials, 10 of the 12 ECOWAS member states have met the primary economic conditions, known as convergence criteria, designed to ensure stability before adopting a shared currency system.
The primary benchmarks include maintaining a budget deficit not exceeding three per cent of Gross Domestic Product (GDP), keeping the annual average inflation rate at five per cent or below, limiting central bank financing of government deficits to a maximum of 10 per cent of the previous year’s tax revenue, and maintaining foreign reserves sufficient to cover at least three months of imports.
Secondary criteria require participating countries to keep public debt below 70 per cent of nominal GDP and ensure that their national currencies do not fluctuate by more than 10 per cent against the West African Unit of Account.
Awaiting Heads of State Decision
One source close to the Monrovia meeting said a detailed report on the progress achieved by member states has not yet been submitted to the ECOWAS Heads of State for final consideration.
“The ECOWAS institutions met in Liberia two weeks ago to review the convergence criteria set by the Heads of State for August 2027,” the source said.
He explained that if most countries meet the conditions by that deadline, the Eco could be introduced by those ready to proceed, while other nations may join later after fulfilling the requirements—an approach similar to that adopted by the European Union during the introduction of the euro.
Because the report has not yet been presented to the Heads of State, it has not been made public.
Goal of the Eco Currency
The Eco is envisioned as a single currency for the West African sub-region aimed at boosting intra-regional trade, strengthening economic integration, and reducing reliance on foreign currencies for cross-border transactions.
Official data indicate that many member states achieved the primary targets—particularly in reducing budget deficits and inflation—toward the end of 2025. Officials also noted strong performance across the region in limiting central bank financing of government deficits and maintaining adequate external reserves.
Fiscal reforms in several countries have helped drive improvements in public finances, while tighter monetary policies and improved food supply have contributed to easing inflation across the region.
Stable Outlook Despite Global Challenges
On the secondary criteria, most member states have also shown positive performance. Public debt levels have declined in several countries, while exchange rates have remained relatively stable.
Data presented at the Monrovia meeting showed that 11 member states kept their currencies within the acceptable range of variation against the West African Unit of Account during the first half of last year.
Another source noted that global disruptions—including the aftermath of the COVID-19 pandemic and geopolitical tensions—had slowed progress for some countries in meeting the convergence criteria.
However, the economic outlook across the region is improving as governments implement reforms.
“What we’ve seen now within the region is stability in almost all the countries. Most of the countries have embarked on reforms that are yielding positive results,” the source said.
With the August 2027 target approaching, officials expressed optimism that nearly all ECOWAS countries could meet the required benchmarks before a final decision on the Eco currency is taken by regional leaders.