Ghana has met three of the four primary convergence criteria of the West African Monetary Zone (WAMZ) for a single currency by July 2005. As at the third quarter of this year, Ghana had achieved the ceiling of 10 per cent on Central Bank financing of budget deficit, import cover ratio of three months and a fiscal deficit/GDP ratio of four percent.
The only criterion, yet to be met is the single digit inflation rate. It is hoped that it will be met by the end of next year.
Nigeria, The Gambia, Guinea and Sierra Leone are the rest of the countries, keen on meeting the convergence criteria.
Finance Minister Yaw Osafo-Maafo announced this at the Second Finance Ministers’ Forum on the Zone. He noted that the biggest obstacle to the achievement of the currency was fiscal dominance. “We believe that the pursuit of prudent fiscal policies is the key to check fiscal dominance that will avoid excessive borrowing from our central banks”.
