12 °c
London
Tuesday, May 30, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

West Africa renames CFA franc but keeps it pegged to euro

Staff by Staff
December 24, 2019
in Africa, Banking, Currency, Economy, Finance, Government, Investing, Trade
Reading Time: 2 mins read
804 25
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

West Africa’s monetary union has agreed with France to rename its CFA franc the Eco and cut some of the financial links with Paris that have underpinned the region’s common currency since its creation soon World War Two.

Under the deal, the Eco will remain pegged to the euro but the African countries in the bloc won’t have to keep 50% of their reserves in the French Treasury and there will no longer be a French representative on the currency union’s board.

Critics of the CFA have long seen it as a relic from colonial times while proponents of the currency say it has provided financial stability in a sometimes turbulent region.

“This is a historic day for West Africa,” Ivory Coast’s President Alassane Ouattara said during a news conference with French President Emmanuel Macron in the country’s main city Abidjan.

In 2017, Macron highlighted the stabilising benefits of the CFA but said it was up to African governments to determine the future of the currency.

“Yes, it’s the end of certain relics of the past. Yes it’s progress … I do not want influence through guardianship, I do not want influence through intrusion. That’s not the century that’s being built today,” said Macron.

The CFA is used in 14 African countries with a combined population of about 150 million and $235 billion of gross domestic product.

However, the changes will only affect the West African form of the currency used by Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo – all former French colonies, except Guinea-Bissau.

The six countries using the Central African CFA are Cameroon, Chad, Central African Republic, Congo Republic, Equatorial Guinea and Gabon, – all former French colonies with the exception of Equatorial Guinea.

The CFA’s value relative to the French franc remained unchanged from 1948 through to 1994 when it was devalued by 50% to boost exports from the region.

After the devaluation, 1 French franc was worth 100 CFA and when the French currency joined the euro zone, the fixed rate became 1 euro to 656 CFA francs.

The agreement follows talks in Nigeria’s capital Abuja on Saturday between West African leaders. Countries in the CFA bloc and other West African nations such as Nigeria and Ghana have for decades debated creating their own currency to promote regional trade and investment.

The CFA franc was born in 1945 and at the time stood for “Colonies Françaises d’Afrique” (French Colonies in Africa).

It now stands for “Communaute Financiere Africaine” (African Financial Community) in West Africa and in Central Africa it means “Cooperation Financiere en Afrique Centrale” (Financial Cooperation in Central Africa).

Source: Reuters

Related

Tags: AbidjanAbujaafricaAfrican Financial CommunityBeninBurkina FasoCameroonCentral AfricaCentral African CFACentral African RepublicCFACFA FrancChadColonies Françaises d'AfriqueCommunaute Financiere AfricaineCongo RepublicCooperation Financiere en Afrique CentraleEcoEquatorial GuineaEuroFinancial Cooperation in Central AfricaFranceFrench Colonies in AfricaFrench francFrench TreasuryGabonGDPGhanaGross Domestic ProductGuinea-BissauIvory CoastMaliNigerNigeriaParisPresident Alassane OuattaraPresident Emmanuel MacronSenegalTogoWest AfricaWorld War Twoафрикаأفريقياアフリカ非洲
ScanSendShare332Tweet207Share58Pin75Send
Staff

Staff

Related Posts

TECH – Coding Algorithms in MT4: Understanding MQL 4
Tech

TECH – Coding Algorithms in MT4: Understanding MQL 4

by FurtherAfrica
May 29, 2023
BP production in Angola is in decline since 2017
Energy

New oil companies entering Angola’s oil market

by FurtherAfrica
May 29, 2023
Agriculture

Mozambique is among the world’s largest tobacco producers

by 360 Mozambique
May 29, 2023
Business

Emirates Etisalat keen to enter Ethiopian market

by FurtherAfrica
May 29, 2023
Three unmissable experiences in Namibia for your bucket list
Travel

Tourism recovers in Nambia ahead of peak season

by FurtherAfrica
May 29, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

TECH – Coding Algorithms in MT4: Understanding MQL 4
Tech

TECH – Coding Algorithms in MT4: Understanding MQL 4

by FurtherAfrica
May 29, 2023
0

In the world of automated trading, MetaQuotes Language 4 (MQL 4) is a widely used programming language for developing algorithmic...

Read more
BP production in Angola is in decline since 2017

New oil companies entering Angola’s oil market

May 29, 2023

Mozambique is among the world’s largest tobacco producers

May 29, 2023

Emirates Etisalat keen to enter Ethiopian market

May 29, 2023
Three unmissable experiences in Namibia for your bucket list

Tourism recovers in Nambia ahead of peak season

May 29, 2023

FurtherAfrica Partners Network

The Exchange Farmers Review Africa 360 Mozambique
TechGist Africa Energy Capital & Power Club of Mozambique
Taarifa Rwanda Web3Africa See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa  

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 107,187 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?