MONROVIA– The Central Bank of Liberia(CBL) Executive Governor, Henry F. Saamoi, has declared that the ECOWAS Exchange Rate Mechanism (ERM) is the fulcrum of West Africa’s single currency project, describing it as “a critical institutional pillar of West Africa’s monetary integration agenda, supporting trade facilitation, policy convergence, and macroeconomic stability.
By Jaheim T. Tumu- jaheim.tumu@frontpageafricaonline.com
Saamoi’s remarks, delivered on his behalf by Jefferson Kambo, Director of Research, Policy and Planning at the CBL, set the tone for a five‑day regional workshop hosted in Monrovia by the West African Monetary Agency (WAMA).
The workshop, held at the CBL Auditorium from June 22–26, has brought together experts from ECOWAS central banks to finalize technical modalities for operationalizing the ERM and to review proposals for the ECOWAS Monetary Cooperation Fund.
Governor Saamoi emphasized that exchange rate stability and macroeconomic convergence are essential prerequisites for the successful introduction of the Eco, the proposed ECOWAS single currency.
He outlined four critical functions of the ERM. “facilitating trade and payments, promoting convergence, strengthening monetary discipline, and laying the groundwork for harmonized monetary policy across diverse exchange regimes. “
He noted that while all ECOWAS member states currently comply with the exchange rate criterion of +/-10 percent, some in the past have faced volatility and external balance challenges.
“This workshop provides a timely platform to equip participants with modern analytical tools to address emerging issues such as exchange rate crises, early warning systems, and the impact of geopolitical conflicts on monetary stability,” Saamoi said.
Saamoi stressed that the ERM will “reduce dependence on external anchors like the Euro and USD, enhance regional stability by curbing exchange rate volatility, and serve as the operational backbone of the ECOWAS Monetary Cooperation Programme.”
This declaration reflects an ambition within ECOWAS to insulate regional economies from external shocks and to build confidence in a homegrown monetary framework.
For Liberia, hosting the workshop underscores its growing role in shaping regional monetary policy and advancing integration.
Delegates attending the workshop are expected to examine the operational framework of the ERM, including mechanisms for monitoring exchange rate movements, designing early warning systems and strengthening monetary discipline across diverse economies.
The deliberations will also cover the proposed ECOWAS Monetary Cooperation Fund (EcMCF), which is intended to provide financial support for member states and reinforce the ERM’s credibility.
Officials say the fund will deepen regional monetary cooperation and serve as a buffer for countries navigating convergence challenges.
Experts are presenting technical papers, sharing country experiences, and debating policy options for harmonizing monetary regimes. The discussions are seen as critical steps toward building consensus on the Eco’s eventual rollout.
By hosting the workshop, Liberia has positioned itself at the center of ECOWAS’s monetary integration agenda. The Central Bank’s leadership in convening experts underscores its commitment to advancing regional cooperation and ensuring that the Eco project is grounded in credible technical foundations.
Governor Saamoi’s remarks highlighted the importance of collective expertise. “The collective expertise of participants will yield a credible action plan to advance ECOWAS toward a stable and sustainable monetary union,” he said.
The workshop comes at a time when ECOWAS faces mounting pressure to deliver on its long‑standing promise of a single currency. While political will has often faltered, the technical groundwork being laid through the ERM offers a pathway toward stability and credibility.
The outcome will determine whether ECOWAS can finally move beyond rhetoric and deliver a monetary union that is both stable and sustainable.
