The Role of Law in Shaping a Single Currency: The European Experience in a West African Context

Abstract

This paper assesses the feasibility of West African economic and monetary union - in particular the planned use of the eco currency – in light of the legal structure and challenges of the European monetary union. The paper begins by briefly expounding on the concept of money and defining it in the broader context of law and of monetary union. Thereafter, the effective harmonization of laws and the relevance of sequential monetary integration are identified as the first legal factors affecting the eco currency. Next, the ongoing difficulty of economic convergence in the ECOWAS is investigated with a comparison to some shortcomings of European Union convergence and an assessment of convergence criteria. Central bank independence and effective criminal and judicial cooperation are reviewed as additional factors which may play a major role in the success of a West African single currency. The analysis concludes that the advent of monetary union in the ECOWAS region presently lacks feasibility when considering the issues identified but can be redeemed, among other things, by enhanced political will and implementation of monetary union law.