The
West African Monetary Agency (WAMA) has got a new head to steer the affairs of
the Agency.
This
is no other than our own Gambian compatriot Momodou Bamba Saho, who was
Governor of the Central Bank of The Gambia before he took up international
appointments and became IMF representative for Anglophone countries in Africa.
So
we must first of all congratulate Mr Saho for the new appointment to serve as
head of WAMA, which is in charge of overseeing the planning and smooth
implementation of a single currency for West Africa.
WAMA
is an autonomous and specialised agency of the Economic Community of West
African States (ECOWAS). It was institutionalised in 1996 as a result of the
transformation of the West African Clearing House (WACH) established in 1975 to
serve as a multilateral payment facility to promote trade within the West
African sub-region.
“In
addition to its functions of routing and clearing trade transactions and
services, the Agency has been charged with the responsibility of monitoring,
coordinating and implementing the ECOWAS Monetary Cooperation Programme (EMCP),
geared towards the creation of the ECOWAS single currency,” according to
ECOWAS.
The
Agency has the objective of promoting the use of national currencies in trade
and non-trade transactions within the sub-region; bringing about savings in the
use of member states’ foreign reserves; encouraging and promoting trade and
exchange liberalization among member states; enhancing monetary cooperation and
consultation among member states; facilitating the harmonisation of and
coordination of monetary, as well as fiscal policies and structural adjustment
programmes; ensuring the monitoring, coordination and implementation of the
ECOWAS Monetary Cooperation Programme; initiating and promoting policies and
programmes relating to monetary integration in the sub-region; and, to ensure
the establishment of a single monetary zone in West Africa, thereby paving the
way for the eventual conduct of a single monetary policy and the establishment
of a single currency.
We
have no doubt in Mr Saho’s ability and capability in steering the affairs of
this body, as he has ably performed in such a capacity in his tenure as
governor of the Central Bank of The Gambia, which paved the way for him to
attain international appointment as the Alternative Executive Director to the
IMF, and became its Executive Director from 2012 to 2014.
One
of his tough tasks though is in treading the path of achieving a single
currency for West Africa.
Achieving
or attaining a single currency for West Africa has been a herculean task over
the years. This is due to several factors bedeviling the introduction of a
common currency in the West African Monetary Zone. These could actually be
placed under two broad categories: political and economic challenge.
The
political will of leaders of the zone towards achieving a single currency has
been questionable.
While
some leaders in the zone are making earnest efforts at transforming their
ailing economies to meet the convergence criteria for introduction of the common
currency, others are lackadaisical in their approach to meeting the targets set
out by the zone.
On
the economic front, factors like inflation, import bill, balance of payments,
and increasing interest rates on debt burden are frustrating efforts at
arriving at a common ground for member states to introduce a common currency.
These
are real issues that need to be addressed, and it takes the concerted efforts
of our heads of state, ECOWAS economic decision makers and financial
technocrats to manage our economies so as we are able to attain the common
convergence criteria that will permit us to introduce a single currency for the
zone.
Momodou
Bamba Saho could well be able to steer the WAMA ship to that point and, even
more, if given the necessary support.
“You
can do anything as long as you have the passion, the drive, the focus, and the
support. ”
Sabrina
Bryan
