Ivorian President Sees New Regional Currency On Hold Until 2023

(Bloomberg) --

The economic damage wrought by the coronavirus pandemic has pushed back plans to introduce a new regional currency in West Africa by at least three years, Ivory Coast President Alassane Ouattara said.

The West African Economic and Monetary Union bloc of eight mostly French-speaking countries agreed in December to start phasing out the seven-decade-old common CFA franc this year. Earlier this month, the group announced plans to work on a new roadmap for the so-called eco currency after lockdowns to curb the spread of the virus curbed economic growth and derailed government budgets.

The region’s budget deficit is expected to total about 8% of GDP this year, compared with the 3% envisaged in convergence criteria that need to be met before the new currency is introduced, according to the Economic Community of West African States.

“We know that the eco cannot be put in place this year because of Covid and the difficulties we have in the different states,” Ouattara told reporters Saturday. “We think it will be difficult to get back into the 3% deficit for two or three years, so personally I don’t see the eco arriving before three to four years.”

The leader of the world’s top cocoa producer, who’s seeking re-election next month, spoke at the end of a four-day visit to the central Marahoue region. Other highlights from Ouattara’s briefing:

On African Court’s Ruling in Favor of Former President Laurent Gbagbo

“These are decisions that are null and void and we do not intend to apply them,” he said in response to the Arusha-based African Court on Human and Peoples’ Rights Court ruling on Friday that former President Laurent Gbagbo be reinstated on the electoral list. Following Ivory Coast’s withdrawal from the court at the end of April, only six African nations recognize its authority, he said. Gbagbo’s exclusion from the electoral list because of a criminal conviction ultimately led to his candidacy being rejected by Ivory Coast’s constitutional council.

On Opposition Calls for Civil Disobedience Against His Third-Term Bid

“The others want the power to squander the funds of the republic again,” he said. “I am proud of my record and I will continue.” Ouattara’s main challenger, Henri Konan Bedie, on Sept. 20 led calls for a civil disobedience campaign against what they deem to be an unconstitutional third-term bid.

©2020 Bloomberg L.P.