Experts recommend axing the CFA franc to strengthen financial integration in West Africa
They called for the creation of a single currency in the ECOWAS.The economic development of the Economic Community of West African States (ECOWAS) relies on the creation of a common currency, according to participants at a workshop presenting the results of a study called "Regional Integration in Western Africa: Challenges and Opportunities for Senegal".
The success of this solution presupposes the suppression of the CFA franc to strengthen financial integration in the region.
The Director of the Centre for Research on Economic Policy (CREPOL) Diéry Seck, believes that ECOWAS countries can increase their funding capacity by external borrowing through the creation of a single currency, All Africa reports.
He also believes that there is a need for a sovereign debt assessment model, and argues that a country should be able to use part of the reserves of its neighbours to pay its external debt.
Some participants highlighted the obstacles to overcome before such currency can be created, including integration for all economic sectors and the problem of exchange rates.
They also called for the development of intra-regional investment, which suffers due to different provisions between Anglophone and Francophone systems for repatriation of capital and profits.