Sierra Leone News: SL behind others on road to single currency

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The Governor of Bank of Sierra Leone, Dr. Kaifala Marah, says the country fulfilled only one of the four primary convergence criteria in 2016, at the West Africa Monetary Zone (WAMZ) meeting. WAMZ is meeting to discuss a common currency system. Members of the zone include the five English-speaking countries of West Africa and Guinea. They are meeting at the Bintumani Hotel in Freetown to discuss how they will ensure the single currency to be known as ‘Eco’ will come into use in 2020. “Sierra Leone remains committed to the ECOWAS WAMZ integration agenda,” Dr. Marah said yesterday, while addressing the opening session of the 34th Meeting of the committee of Governors of Central banks of WAMZ. “On the domestic front, we are contending with a hike in prices resulting from exchange rate depreciation and domestic food supply shocks. Further, the recent upward adjustment of domestic prices of petroleum products also brought in its wake additional pressure on domestic prices of goods,” Dr. Marah said. He is confident about the stability of the economy. He said, “We are however determined to get inflation under control whiles we are nearly at the point of reaching exchange rate stability.” These are part of the convergence criteria that member countries of Guinea, Nigeria, Liberia, Ghana, Gambia and Sierra Leone should comply with to be a member of Eco. Sierra Leone achieved all 4 primary criteria in 2014 but slipped back in 2016 because of the effect of Ebola and fall in commodity prices. “The country’s performance on the primary convergence criteria deteriorated at the end of June 2016 by satisfying only one of the 4 primary convergence criteria,” he said. Bank of Sierra Leone and the commercial banks are concluding preparations for the implementation of the national switch project. However, he cautioned that the zone should learn from the experiences of the Euro Zone. “We should learn from the Euro zone crisis including Brexit which is threatening the foundation of regional integration across the globe.” Only Liberia fulfilled the 4 primary criteria in 2016. Guinea and Nigeria satisfied 3 each. Ghana satisfied 2, while the Gambia and Sierra Leone satisfied one each, Dr. Abwaku Englama, Director General of the West African Monetry Institute (WAMI) said. Dr. Marah is the Chairman of the committee of Governors of central banks of WAMZ. Monday February 13, 2017

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