The Maastricht convergence criteria
have a dual purpose.
One is to allow latitude in the application of the convergence criteria
and the other is to view the starting date for monetary union as flexible.
The convergence criteria
already have sparked dramatic effects.
They already are, or soon will be, reorienting their monetary policies towards stimulating growth and away from the achievement of the arbitrary convergence criteria
. That is not to argue that these countries have given up on their objective of restraining inflation.
''Foreign exchange reserves remained strong (5.7 months of import cover), meeting the CBK's statutory requirement to maintain at least four months of import cover and the EAC region's convergence criteria
of 4.5 months,'' CBK said.
In its appraisal last year of the budget options for Kenya over the medium term, the Parliamentary Budget Office warned that the government has to reduce its deficit to three per cent of income generated in the country in line with the convergence criteria
for East African Community countries.
Diouf said from the Commission's findings, many of the countries were yet to meet the macroeconomic convergence criteria
for a single currency set up by the ECOWAS and the West African Monetary Agency (WAMA).
"The convergence criteria
are legally defined in the Maastricht Treaty and I know that Bulgaria has made a significant progress in meeting those criteria but hasn't met all of them," he added.
Data for the convergence criteria
for individual countries were obtained from the Eurostat, OECD, and IMF databases, or from the statistical offices of the countries under analysis.
On the ECOWAS single currency, the Summit endorsed the recommendations on the convergence criteria
, the streamlining of the institutions and the revised roadmap with a specific indication of the institutions in charge of its implementation.
In terms of public finances, Latvia's budget deficit went from 8.1% in 2010 to 1.2% of the GDP in 2012 - this is well below the 3% reference value (convergence criteria