Central Bank of Nigeria, Research Department.
Economic Community of West African Staes (ECOWAS), West African Monetary Zone (WAMZ)
The emergence of a s ingle currency and a common central bank presupposes the adoption of a common monetary and fiscal policy by all the member countries starting from 2004. What is the economic significance of the primary criteria? What are the consequences if member countries fail to converge? Can the policy of a single currency and a common central bank succeed if the members fail to meet the primary criteria? In other words, is the creation of the appropriate institutions a necessary and sufficient condition for the success of a monetary union? Finally, can a monetary union under a common central bank succeed in the absence of a political union? These are the major questions which this paper shall attempt to answer. To achieve this objective, the rest of the paper is structured as follows: Part II presents a brief literature review and the theoretical framework. Part III x-rays the pillars under the primary convergence criteria and the rationale for the choice. Part IV appraises the macro-economic performance of the member states in general, and their achievement of the primary criteria in particular to date, while Part V concludes the paper.
Nnanna, J. O. (2002). The West African Monetary Zone (WAMZ) convergence or divergence: which way forward. Economic and Financial Review, 40(4), 107-132.