EPSS: ECOWAS Member-States urged to collaborate towards ensuring its functionality

At Parliamentary Seminar of the ECOWAS Parliament, a former Auditor-General of ECOWAS Institutions says with the use of the ECOWAS Payment and Settlement System (EPSS) across Member-States, it would be easier to pursue open economic and trade policies
adminFebruary 3, 202323 min

At Parliamentary Seminar of the ECOWAS Parliament, a former Auditor-General of ECOWAS Institutions says with the use of the ECOWAS Payment and Settlement System (EPSS) across Member-States, it would be easier to pursue open economic and trade policies

 

 

EPSS

 

A former Auditor-General of Economic Community of West African States (ECOWAS) Institutions,  Dr Alfred Braimah, has urged the Central Bank of all Member-States to collaborate towards the efficient functioning of the ECOWAS Payment and Settlement System (EPSS) in the region.

Dr Braimah stated this in his paper presentation, titled “The Missing Sequence Towards ECOWAS Single Currency,” during the First 2023 Parliamentary Seminar of the ECOWAS Parliament in Bissau, Guinea Bissau.

He explained that the safety and efficiency of an EPSS are relevant to market participants and public officials in view of their important roles in trade and resource flows and in financial sector management and development.

 

READ ALSO: “Absence of single currency; impeding intra-regional trade” – ECOWAS Speaker

 

According to him, every Central Bank of a member-state must be ready to collaborate towards the efficient functioning of the EPSS by signing on to a well-founded legal basis under all relevant jurisdictions of Member-States. He also noted that they must clearly define procedures for managing credit and liquidity risks, specifying the respective responsibilities of the system operator and the participants and providing appropriate incentives to manage and contain those risks.

“Rules and procedures that would enable participants to have a clear understanding of its impact on each financial risk incurred through participation in it,” he said.

 

Speaking on the benefits of EPSS, Braimah noted that, ”With the use of EPSS across Member-States, it would be easier to pursue open Economic and Trade policies, since domestic and international payments would flow more seamlessly easily. Capital and Investment move freely and beneficially, and gains of Intra-Regional Trade and Economic Integration would be more pronounced when supported with an EPSS in the region.

“An efficient EPSS would also expedite trade by improving the timeliness and transparency of customs processes and government revenue collection process through the emerged on-line payment transaction, and efficient regional payments and settlement system usually play a key role in the day-to-day operations of the Foreign Exchange Market, which involves payments for currency exchange across international borders.”

 

READ ALSO: 2023: ECOWAS Speaker sues for sportsmanship as Nigeria heads to the polls

 

In another paper presentation, the Director of the Economic Strategy and Research, Ministry of Finance, Ghana, Dr Alhassan Iddrisu, listed key problems and challenges of the ECOWAS Monetary Cooperation Programme (EMCP).

“One of the problems and challenges of the EMCP is endogenous shocks such as pandemics, drought, insecurity, epidemics (ebola) and exogenous shocks like global financial crisis,  food and fuel crisis,  crash in international commodity prices, weigh heavily on member states macroeconomic performance.

Member-States’ challenges in achieving the convergence criteria on a sustainable basis (continuous for three years), as enshrined in the stability and convergence pact, continue to delay the launching of the single currency. The balance between national economic development priorities and the attainment of zonal macroeconomic convergence targets is often very difficult to determine.”

 

2 comments

  • KOMOMOH OFEM

    February 3, 2023 at 12:28 pm

    If this is applied this will reboost the functionality of the West African currency that should validate worldwide acceptance and recognition and reduce barriers to international trade and investment

    Reply

  • Effiong Innocent

    February 3, 2023 at 1:04 pm

    Actually African continent really need to foster more relationship means to keep us bond and help look into African issues and fine solutions, because is only Africans that can solve African problems. We need Uniform identification, and I think this currency will support African ideal ,creativity and innovation in Economic exchange ,.we can’t countinue to depend on international Nations to help address our change. But first we need to define our relationship ties and get every Africa member nations to understand and buy into the African unionism

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

  • JOIN OUR COMMUNITY

  • MEMBERSHIP BENEFITS
    Close