The Eco Currency will boost trade and economic growth

Synopsis: The Franc CFA — a colonial era currency — will be replaced by the Eco; the new currency that should facilitate intra-African trade and reduce the probability of a dollar-induced crisis. Furthermore, with a majority, if not all, intra-African trade cleared in dollars, this increases the risk of a currency or banking crisis caused by a sudden appreciation in the dollar suggest that all trade amongst African countries should be cleared in domestic currencies. Not only will this give legitimacy to the Eco, it will also ensure that labor market reforms and…