Burkina Faso: From CFA to ECO, monetary sovereignty in the ECOWAS area under discussion in Ouagadougou
The Centre for Economic and Social Policy Analysis (CAPES) organised an international conference in Ouagadougou on 4 September 2023 on political and monetary sovereignty in the ECOWAS region, with a focus on the transition from the CFA to the ECO. Several renowned experts, including Professor Léon Sampana, Professor Idrissa Ouédraogo, Professor Kako Nubukpo, Professor Mamadou Koulibaly and Professor Pam Zahonogo, took part in the conference, which was chaired by the Head of Government, Dr Apollinaire Kyelem de Tambela.
The aim of the conference was to debate the monetary future of West Africa, highlighting a number of key issues, including the difference between the ECO and the FCFA in terms of guaranteeing the monetary sovereignty of member states, the necessary anchoring of the ECO to be compatible with new partners, coordination between fiscal policy and monetary policy, and possible alternatives for countries in crisis (Mali, Burkina, Niger and Guinea) in their quest for political and monetary sovereignty.
Dr Victor Sanou, Executive Director of CAPES, stressed that the aim of the conference was to fuel a scientific debate, far removed from populist arguments, to assess the relevance of the transition to ECO, particularly in the light of the economic sanctions imposed on certain ECOWAS countries.
The Prime Minister, Dr Apollinaire Kyelem de Tambela, welcomed the holding of this conference, stressing the crucial importance of the monetary issue and monetary sovereignty in African states. He pointed out that dependence on raw materials and fluctuations in international markets made it difficult to have a stable currency based on these products.
«In our countries, our wealth is made up mainly of mineral raw materials and also agricultural raw materials. Not only are we not the only ones to produce them, but we have no control over prices on the international market. Prices are set in Paris, London or New York. They can go up or down depending on the market. Under these conditions, it is difficult to have a stable currency based on these products unless we look for another guarantee» explained the Prime Minister.
However, he insisted on the need to think about credible alternatives to the FCFA.
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