CFA franc

The CFA franc (French: franc CFA, [fʁɑ̃ seɛfɑ]), or Franc of the Financial Community of Africa (French: franc de la Communauté financière africaine; originally the Franc of the French Colonies in Africa, French: franc des Colonies françaises d'Afrique; colloquially franc; abbreviation: F.CFA), is the name of two currencies, the West African CFA franc, used in eight West African countries, and the Central African CFA franc, used in six Central African countries.^[1] Although separate, the two CFA franc currencies have always been at parity and are effectively interchangeable. The ISO currency codes are XAF for the Central African CFA franc and XOF for the West African CFA franc. On 22 December 2019, it was announced that the West African currency would be reformed and replaced by an independent currency to be called Eco.^[2]

Both CFA francs have a fixed exchange rate (peg) to the euro: €1 = F.CFA 655.957 exactly, and member countries deposited half of their foreign exchange reserves with the French Treasury.^[3] The currency has been criticized for restricting the sovereignty of the African member states, effectively putting their monetary policy in the hands of the European Central Bank. Others argue that the CFA "helps stabilize the national currencies of Franc Zone member-countries and greatly facilitates the flow of exports and imports between France and the member-countries".^[4]

In May 2020, the French National Assembly agreed to end the French engagement in the West African CFA franc, including the foreign reserve deposit requirements. The West African CFA franc is expected to be renamed as the "Eco" in the near future.^[5]

^ Nzaou-Kongo, Aubin (2020). "International Law and Monetary Sovereignty. The Current Problems of the International Mastery of the CFA Franc and the Crisis of Sovereign Equality". African Review of Law and Critical Thinking. 1 (1): 25–61. doi:10.6084/m9.figshare.12808835.v3. Retrieved 5 December 2020.
^ "West Africa renames CFA franc but keeps it pegged to euro". Reuters. Archived from the original on 22 December 2019. Retrieved 22 December 2019.
^ "A strong currency like the CFA franc makes exports from the CFA-franc zone much more costly than they would ordinarily be and as a result economic growth suffers accordingly. Since most of the countries that use the currency are poor, mostly agricultural economies, this has put a stranglehold on their trade and made them overly dependent upon continuing, privileged access to French and, though them, European markets. That this effectively recreates a quasi-colonial trading relationship between France and its former African colonies that benefits France mightily has not been lost on observers. - See more at: http://afkinsider.com/41946/forex-africa-african-euro/#sthash.bAiuUVxB.dpuf", FOREX Africa: The CFA Franc aka The African Euro, By Jeffrey Cavanaugh AFKI Original Published: 12 February 2014, 02:11pm, http://afkinsider.com/41946/forex-africa-african-euro/#sthash.bAiuUVxB.dpuf
^ Economic Integration and Development in Africa, Henry Kyambalesa, Mathurin C. Houngnikpo, p. 88
^ Cite error: The named reference :3 was invoked but never defined (see the help page).

[2020_nzaou_kongo-1] Nzaou-Kongo, Aubin (2020). "International Law and Monetary Sovereignty. The Current Problems of the International Mastery of the CFA Franc and the Crisis of Sovereign Equality". African Review of Law and Critical Thinking. 1 (1): 25–61. doi:10.6084/m9.figshare.12808835.v3. Retrieved 5 December 2020.

[2] "West Africa renames CFA franc but keeps it pegged to euro". Reuters. Archived from the original on 22 December 2019. Retrieved 22 December 2019.

[:0-3] "A strong currency like the CFA franc makes exports from the CFA-franc zone much more costly than they would ordinarily be and as a result economic growth suffers accordingly. Since most of the countries that use the currency are poor, mostly agricultural economies, this has put a stranglehold on their trade and made them overly dependent upon continuing, privileged access to French and, though them, European markets. That this effectively recreates a quasi-colonial trading relationship between France and its former African colonies that benefits France mightily has not been lost on observers. - See more at: http://afkinsider.com/41946/forex-africa-african-euro/#sthash.bAiuUVxB.dpuf", FOREX Africa: The CFA Franc aka The African Euro, By Jeffrey Cavanaugh AFKI Original Published: 12 February 2014, 02:11pm, http://afkinsider.com/41946/forex-africa-african-euro/#sthash.bAiuUVxB.dpuf

[:1-4] Economic Integration and Development in Africa, Henry Kyambalesa, Mathurin C. Houngnikpo, p. 88

[:3-5] Cite error: The named reference :3 was invoked but never defined (see the help page).

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