MON, FEB 10 2020-theG&BJournal-The Federal government of Nigeria (FGN) today declared its stance on the ECO Currency, calling for an extension of time on the take-off of the Single Currency.
The FGN on twitter said there has to be an extension of take-off time because the convergence criteria have not been met by majority of the countries, a stand it has maintained for a while now.
Mrs Zainab Ahmed, the Minister of Finance first hinted of the deadlock on the Currency take-off early December 2019 when she revealed that only Togo had met all the convergence criteria within the last two years of the monetary union.
The main criteria to be achieved by participating countries include the attainment of a single-digit inflation rate each year, a fiscal deficit of no more 4% of the GDP, a Central Bank deficit financing of no more than 10% of the previous year, a gross reserve that could finance at least three months of imports as well as nominal exchange rate variation of plus or minus ten per cent.
Zainab Ahmed made it clear back in December that the inability of other countries to achieve the criteria would make take-off of the ECO Currency problematic.
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