Ghana Committed To Monetary Union - VP

Vice President Aliu Mahama yesterday said Ghana would fully support all activities toward the adoption of a monetary union for West Africa to facilitate trade and movement for the socio-economic benefit of the 250 million people in the Sub-region.

Vice President Mahama said this when he received Mr. Mory Kaba, Secretary of State for Cooperation of Guinea, at the Castle, Osu, who presented an invitation from Guinean President Lansana Conte, to the Summit of Heads of State of the Second Monetary Zone, West African Monetary Zone (WAMZ), to be held on November, 7, in Conakry.

Vice President Mahama said Ghana would be adequately represented at the Summit and at the Meeting of the members of the Convergence Council of Ministers of WAMZ that would be held alongside the Summit.

He recalled the Eighth Convergence Council of Ministers and Governors of the West African Monetary Zone Meeting in Accra last June, saying that demonstrated Ghana's commitment to the adoption of a single monetary unit by the sub-region.

The decision to adopt a West African Monetary Zone as part of the ECOWAS effort to introduce a Single Monetary Zone by 2004 was made at a meeting of Heads of State of six West African countries two years ago in Accra.

With the Monetary Union, resources in the Sub-region would be pooled to create a larger regional market, increase trade, significantly improve domestic and foreign direct investment and create more jobs that would lead to a higher standard of living.

Mr. Kaba stressed the importance of the Summit, saying Ghana's participation was crucial as key decisions that would lead to the formulation of policies would be made.

The Agenda for the Summit includes a date for the take-off of the Common Central Bank, selection of Headquarters of the Central Bank and the contribution to the capital of the Central Bank.

Presidents John Agyekum Kufuor, Yahya Jammeh of The Gambia, Lansana Conte of Guinea, Olusegun Obasanjo of Nigeria and Ahmed Tejan Kabbah of Sierra Leone are expected to attend.

Others attending the Summit would be President Pedro Verona Pires of Cape Verde, Charles Taylor of Liberia and Dr. Mohamed Ibn Chambas, Executive Secretary of ECOWAS.

The Summit would be preceded by a technical experts meeting from November 3, 2002.

The President of the ECOWAS Bank for Investment and Development, Director-General of the West African Monetary Agency, Director-General of the West African Institute for Financial and Economic Management and the Director-General of WAMI would also attend.

Convergence criteria for members include the achievement of a single digit inflation by 2003, a foreign exchange reserve covering imports for not less than three months.

Additionally, their budget deficit to their Gross Domestic Product (GDP) should be less than five percent, while their Central Banks credit to their governments should be less than 10 percent of the previous year's tax revenue.

None of the countries have fully met the convergence criteria.

Though, the Gambia achieved these last year, it has slipped.