A common currency for countries within the economic community of West African states

While the West African sub-region has progressed in its efforts to achieve sustainable development, more intensive efforts are needed to address its developmental constraints. Among these constraints, the fragmentation of the sub-continent into small and landlocked countries remain one of the structural challenges to be faced. For this reason, strengthening regional co-operation and economic integration is a significant part in the improvement of the region’s economic performance. Monetary integration, which involves the use of a common currency within the area, is part of the process of economic integration. This study reflects upon the difficulties experienced by countries within the Economic Community of West African States (ECOWAS) without a common currency to facilitate economic growth and development. The study adopted a descriptive methodology and embarked on a thorough analysis of recent and relevant secondary sources. This was done in order to determine the expected effects of a common currency in the community, as well as to evaluate the viability of a single currency in the area. The findings indicate that there are potential gains expected from the establishment of a common currency in the relevant community of countries. These gains are contingent upon the meeting of a number of preconditions. These conditions include, inter alia, the need for a multidimensional approach to regionalism, the sustainability of the fiscal policy framework in the region and a greater convergence of the ECOWAS economies