From CFA to ECO: Opportunities and Challenges of Economic and Monetary Cooperation in West Africa
The major announcement of December 21, 2019, of the shift from the CFA franc to the Eco led to major changes in the monetary landscape and institutional setting of the West African states. This paper analyzes the benefits and challenges for economic and monetary cooperation in West Africa of this new development. While this new initiative has many advantages, establishing a new currency at the West African region, as a whole faces unresolved issues that may compromise its success. The paper sheds light on these issues and represents a major contribution to the policy debate on the readiness of West African states to create a single currency.