The ECO is meant to exchange the CFA franc which is at the moment being utilized in eight west African nations and 6 nations in central Africa.
The transfer to drop the CFA franc is a part of France’s plan to rebuild relations with its former African colonies.
“I needed to have interaction France in a historic and impressive reform of cooperation between the West African financial and financial union and our nation. We do it for African youth,” Macron wrote on his official Twitter web page on Saturday.
The forex was initially pegged to the French franc however has been linked to the euro since 1999. A French consultant has been on the board of the forex’s union.
However the brand new forex revamp introduced by Macron won’t require African nations within the ECOs financial bloc to maintain half their reserves with France or have a consultant sit on their forex’s board.
It can, nonetheless, remained pegged to euro and assured by France.
On his official Twitter web page, Ivorian President Alassane Ouattara described the adoption of the ECO as a step in constructing extra business-oriented relations free from colonial affect.
“The reform of the CFA takes under consideration our want to construct our future in a accountable method, with a view to appeal to non-public funding, create jobs and pursue the financial improvement of our nations,” he mentioned on Twitter.
The ECO might be used initially solely within the eight West African nations. The CFA will stay in use for now by the six Central Africa nations, Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon.
Revamping the west African forex shouldn’t be France’s first transfer in rebuilding its relationship with African nations on the continent.
Over the previous years, the nation has taken many steps to clean its affiliation with Africa and Africans.