The Risks of Launching a New Currency: The Case of ECOWAS and the ECO Project An Analysis of the Macroeconomic, Institutional and Political Vulnerabilities of a Monetary Union in the Making

monetary union, ECO, ECOWAS, optimum currency area, macroeconomic convergence, CFA franc, monetary credibility, regional integration, West Africa

Aly Badara Samassekou, Fassory Sangaré. he Risks of Launching a New Currency: The Case of ECOWAS and the ECO Project An Analysis of the Macroeconomic, Institutional and Political Vulnerabilities of a Monetary Union in the Making. Economics World, Oct.-Dec. 2026, Vol. 13, No. 4, 145-161, doi: 10.17265/2328-7144/2026.04.003

Alesina, A., & Barro, R. J. (2002). Currency unions. Quarterly Journal of Economics, 117 (2), 409-436.

Barro, R. J., & Gordon, D. B. (1983). Rules, discretion and reputation in a model of monetary policy. Journal of Monetary Economics, 12 (1), 101-121.

De Grauwe, P. (2012). The governance of a fragile eurozone. Australian Economic Review, 45 (3), 255-268.

Economic Community of West African States (ECOWAS). (2012, revised 2015). Macroeconomic Convergence and Stability Pact among ECOWAS Member States. Abuja: ECOWAS Commission.

Economic Community of West African States (ECOWAS). (2026). Final Communiqué of the 69th Ordinary Session of the Authority of Heads of State and Government. Sierra Leone, 19 July 2026.

Fleming, J. M. (1971). On exchange rate unification. The Economic Journal, 81 (323), 467-488.

Frankel, J. A., & Rose, A. K. (1998). The endogeneity of the optimum currency area criteria. The Economic Journal, 108 (449), 1009-1025.

Kenen, P. B. (1969). The theory of optimum currency areas: An eclectic view. In R. A. Mundell & A. K. Swoboda (Eds.), Monetary Problems of the International Economy. Chicago: University of Chicago Press.

Krugman, P. (1993). Lessons of Massachusetts for EMU. In F. Torres & F. Giavazzi (Eds.), Adjustment and Growth in the European Monetary Union. Cambridge: Cambridge University Press.

Kydland, F. E., & Prescott, E. C. (1977). Rules rather than discretion: The inconsistency of optimal plans. Journal of Political Economy, 85 (3), 473-491.

McKinnon, R. I. (1963). Optimum currency areas. American Economic Review, 53 (4), 717-725.

Mundell, R. A. (1961). A theory of optimum currency areas. American Economic Review, 51 (4), 657-665.

Obstfeld, M. (1996). Models of currency crises with self-fulfilling features. European Economic Review, 40 (3-5), 1037-1047.

Rogoff, K. (1985). The optimal degree of commitment to an intermediate monetary target. Quarterly Journal of Economics, 100 (4), 1169-1189.

Samassekou, A. B., & Sangaré, F. (2026). The CFA franc: An obstacle or a catalyst for development? Economics World, 13 (2). New York: David Publishing Company.

West African Monetary Agency (WAMA). (various years). Annual Reports on Macroeconomic Convergence in ECOWAS. Freetown: WAMA.