CONAKRY – Guinea has signaled that it will retain the Guinean franc rather than join the initial rollout of the Economic Community of West African States (ECOWAS) single currency, the Eco, according to a report by Africanews, as the regional bloc presses ahead with plans to launch the long-delayed monetary union in July 2027.
The move follows a decision by ECOWAS leaders to adopt a phased implementation of the Eco, allowing only member states that meet agreed macroeconomic convergence criteria to participate in the first stage. Those benchmarks include targets for inflation, fiscal discipline, public debt, and monetary stability.
Guinea’s position suggests the country will continue using its national currency while monitoring the progress of the regional monetary union.
Economists say the decision reflects concerns over maintaining monetary policy flexibility as Guinea continues to strengthen its economy. They argue that joining a common currency before expanding domestic production and economic diversification could limit the country’s ability to respond independently to economic challenges.
Analysts also point to Guinea’s trade profile. Much of the country’s exports, particularly minerals such as bauxite, are shipped to Asian markets rather than to neighbouring West African countries. Some economists say maintaining the Guinean franc provides greater flexibility in managing exchange rate and trade policies under those circumstances.
ECOWAS is expected to continue discussions in the coming months on several outstanding issues, including the establishment of a regional central bank, governance arrangements, and the selection of countries that will qualify for the first phase of the Eco.
The Eco project, first proposed more than two decades ago, has experienced several postponements as member states struggled to meet the economic conditions required for a common currency. Regional leaders now hope that a phased approach will allow the initiative to move forward while giving additional countries time to satisfy the convergence criteria.
