Guinea has announced it will not adopt the planned single currency of the Economic Community of West African States (ECOWAS), known as the eco, set to launch in July 2027. The 12-member West African economic bloc aims to establish a monetary union, but Guinea is the first country to declare it will keep its national currency, the Guinean franc.

ECOWAS recently indicated a preference for a phased rollout of the eco, allowing countries that meet convergence criteria such as inflation control, debt levels, and monetary stability to join first. Analysts suggest Guinea's decision stems from concerns that joining the monetary union prematurely, without sufficient production capacity, could hinder its economy.

Additionally, Guinea's major trade partners are predominantly outside West Africa, with 80% of its exports directed to Asia. Economist Mohamed Camara told RFI that by linking its currency to neighboring states, Conakry risks losing certain levers of influence.

ECOWAS is scheduled to meet again in December to address unresolved issues including the establishment of a future central bank, decision-making protocols, and the sequence of countries adopting the eco.

Sources