On many occasions, the Minister of Finance, Zainab Shamsuna Ahmed, has however reiterated that West African countries are not ready for any monetary union, as long as they do not meet the convergence criteria: a budget deficit does not not exceeding 3%, inflation less than 10% and debt less than 70% of GDP. Your email address will not be published. Several times, President Alassane Ouattara has defended the CFA franc, “a solid currency”, whose parity with the euro ensures economic stability. First, France will stop participating in the governance bodies of the West African Economic and Monetary Union (Uemoa). These eight countries had a combined population of 105.7 million people in 2014, and a combined GDP of US$128.6 billion (as of 2018). Then, the Central Bank of West African States (BCEAO) will no longer have to deposit half of its foreign exchange reserves with the Banque de France, an obligation that was seen as a humiliating dependence on the France by detractors of the CFA franc. The currency remains pegged to the euro and countries will give up using the colonial era CFA. The CFA is divided into two, the Economic and Monetary Community of Central Africa (CEMAC), which includes Chad, Cameroon, Central African Republic, Gabon, Equatorial Guinea and Republic of Congo, and the West African Economic and … All the countries are former French colonies except Guinea-Bissau. DRC: who of Tshisekedi or Kabila really holds the reins of power? Young Entrepreneurs Sending Gifts To Their Generous Supporters! Plans to overhaul the CFA franc, a France-backed currency used by former colonies in West Africa, have drawn reactions ranging from scepticism to cautious optimism. Under French control the currency continues to circulate in fourteen African countries divided into two monetary zones in West and Central Africa. For now, they are still printed in Chamalières, in the center of France, in a printing house of the Banque de France. The CFA will remain in use for now by the six Central Africa nations, Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon. West Africa is one of the most active sub-regions at the community level since the creation of the Community of West African States and concrete projects such as the free movement of goods and people, a single passport, etc. The West African Franc is tied to the Euro with a fixed exchange rate. The CFA franc was born in 1945 and at the time stood for “Colonies Francaises d’Afrique” (French Colonies in Africa). All Rights Reserved. You cannot print contents of this website. REFORM OF THE CFA FRANC IN WEST AFRICA – INTRODUCING THE "ECO" On 21 December 2019, the French Minister of Economy and Finance and the President of the Council of Ministers of the West African Economic A year ago French Presidents Emmanuel Macron and Ivorian Alassane Ouattara announced the end of the CFA franc in the eight countries of the West African Economic and Monetary Union (Uemoa). The French Treasury guaranteed the currency under a fixed exchange rate dependent on the deposit of 50% of CF… No date has yet been released to change tickets. Save my name, email, and website in this browser for the next time I comment. This currency common to fifteen African countries, including the Comoros, the CFA for “French colonies in Africa”, had… A year ago French Presidents Emmanuel Macron and Ivorian Alassane Ouattara announced the end of the CFA franc in the eight countries of the West African Economic and Monetary … Countries in the CFA bloc and other West African nations such as Nigeria and Ghana have for decades debated creating their currency to promote regional trade and investment. As part of our series on the Tunis workshop, Ndongo Sylla focuses on the CFA franc, one of the most tangible elements of the ‘colonial pact’ in Africa. “The Europeans took nearly thirty years to get their euro,” recalls economist Ndongo Samba Sylla. Thus in 2019, this zone, which as a whole comprises fifteen countries in total, launched on June 29, 2019 in Abuja its process of creating a common currency, the eco. “This Macron-Ouattara reform is a bluff. On the French side, France did ratify on December 10 the monetary cooperation agreement concluded a year ago by Paris and the States of the West African Monetary Union. The new ECO currency will be put into place in the West African countries, including Benin, Burkina Faso, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. Despite an … Some eight Francophone West African states, lead by Côte d’Ivoire, decided in December 2019 to move towards a new currency, the Eco, away from the CFA franc. The CFA franc was created on 26 December 1945, along with the CFP franc. The states include : Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo, which make up the West African Economic and Monetary Union (WAEMU), whose central bank is the BCEAO ; Cameroon, Central … Six Anglophone countries of the economic and political union in the region, Economic Community of West African States, or ECOWAS -- Nigeria, Gambia, Ghana, Liberia and Sierra Leone, and Guinea -- held a meeting in Abuja on Jan. 16, and condemned WAEMU's decision to rename the CFA franc, as reported on … “The question behind all this is to know what is the degree of solidarity to which African countries are ready with each other? All these processes take time, it takes a few more years ”before the actual launch of the eco. The CFA franc was born in 1945 and at the time stood for “Colonies Francaises d’Afrique” (French Colonies in Africa). According to several observers, Côte d’Ivoire, the zone’s main economy along with Senegal, is in no particular hurry to make things happen. For more details, you can see "our data policy". “These are two particularly symbolic questions that crystallized almost all of the criticisms addressed to the CFA franc”, assures AFP a source at the Elysee. Markets have been ignoring…, According to Realme founder Li Bingzhong, the company's original goal is to enable young…, Apple has released a limited series of fully wireless AirPods Pro headphones, with which…, According to the currency strategists of UOB Group, el EUR / USD now faces the next hurdle at…. The end of the CFA franc assumes above all the printing of new banknotes. But the idea of ​​a larger eco is regularly evoked, by integrating other countries like Ghana and especially Nigeria, economic heavyweight of the continent which weighs 70% of the GDP of the sub-region. The use of the CFA franc is highly controversial, with some saying it comes with a "French colonial tax". “It’s an African calendar. Today, we are still with the CFA franc. © 2021 - World Stock Market. New currencies were created in the French coloniesto spare them the strong devalu… We use cookies in a limited and restricted manner for specific purposes. Roewe Marvel R SUV becomes the first to support…, Markets shrug off Capitol assault, USD shaken by blue wave, The first smartphone of the Realme Koi line is presented, Introduced a special version of Apple AirPods Pro headphones at the…, EUR / USD faces next resistance at 1.2360 – UOB, Niger, from mourning to the security response, Soldiers killed in Mali: a tribute and questions, How Jair Bolsonaro is pushing Brazilians to arm themselves, According to the latest news, SAIC has become the first smart electric vehicle brand to…, This is what you need to know to trade today Thursday, January 7: “The issue of parity was meticulously discussed before the announcement of the reform and the response from our African interlocutors […] was that it was desirable to maintain this parity, essentially for reasons of attractiveness, “replied a source at the Elysee, acknowledging a” legitimate “debate. CFA franc zones, unlike other African nations, have avoided high inflations due to France. 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 two zones between 1989 and 1999 had 33 percent of imports and 40 percent of Foreign Direct Investment from France. Another monetary union in Central Africa, separate from the WAEMU, also uses the CFA franc and is not currently affected by the reform. This currency common to fifteen African countries, including the Comoros, the CFA for “French colonies in Africa”, had been created on December 26, 1945, about fifteen years before the independence of the French colonies. Ouattara’s remarks came during a news conference with French President Emmanuel Macron in Ivory Coast’s Abidjan province. The countries using this currency are divided into two zones, eight in West Africa, six in Central Africa, and the Comoros constituting separate monetary unions. El Corte Inglés will create a new logistics subsidiary to compete with Amazon, A complaint in France against the “French fighters” of Nagorno-Karabakh, Iran claims to produce 20% enriched uranium, Mali: the death of two French soldiers claimed by Al-Qaeda in the Sahel, China: a former big boss sentenced to death. The smartest electric car ever. Eight countries use the euro-pegged West African CFA franc, which enjoys unlimited convertibility with the euro. “This is a coup attempt.” Trump supporters…, Central African Republic: Touadéra reelected at the head of…. The CFA franc is the common currency of the 14 African countries belonging to the Franc Zone. Eight members of the West African Economic and Monetary Union (UEMOA) reached an agreement to use a new common currency called the ECO. “What blocks it is a purely political problem: there are dissensions between the leaders of French-speaking Africa,” said Franco-Ivorian economist Youssouf Carrius. The announcement of the new common currency concerns the WAEMU countries that used the CFA franc: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form. In June 2019 the Economic Community of West African States (ECOWAS), bringing together eight CFA franc countries and seven others with their own currencies, chose eco (short for Therefore, 1 Franc always equals to 0.0015 The CFA franc was created in December 1945 when the French government ratified the Bretton Woods Agreement and became the currency of les colonies françaises de l’Afrique or the CFA (“French Colonies of Africa”). The framework of monetary policy remains unchanged, it just focused on annoying symbols such as the name, ”laments Ndongo Samba Sylla, economist at the Rosa-Luxembourg Foundation in Dakar. The West African CFA franc (French: franc CFA ; Portuguese: franco CFA or simply franc, ISO 4217 code: XOF) is the currency of eight independent states in West Africa: Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. The West African CFA Franc (XOF) is the currency shared by eight West-African nations: Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo. Countries that use the West African Franc The West African Franc is an official currency and used in 8 countries. Introduced in 1945 during colonial times, the CFA is linked to the euro under an arrangement that requires African members to lodge half These eight countries had a combined population of 1 The reason for their creation was the weakness of the French franc immediately after World War II. But their move is also part of a wider picture. A history that has seen some changes The CFA Franc Zone includes fifteen African countries. We have the impression of going in circles ”, deplores the former Minister of Prospective and Evaluation of Public Policies of Togo who is preparing a report on the modalities of transition between the two currencies. The West African CFA franc (French: franc CFA; Portuguese: franco CFA or simply franc, ISO 4217 code: XOF) is the currency of eight independent states in West Africa: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. Countries that use CFA franc: Eight countries make up the West African Economic and Monetary Union and a further six are in the Central African Economic and Monetary Community. When France ratified the Bretton Woods Agreement in December 1945, the French franc was devalued in order to set a fixed exchange rate with the US dollar. In reality, these are France and fifteen sub-Saharan African states: the Comoros, the eight-member countries of the West African Monetary Union (WAMU) and the six-member countries of the Economic and Monetary … And this is in substance the announcement that was made on December 21, 2019 in Abidjan by the two heads of state. However, the eco, the future West African currency, is still not on the market, and many concrete questions still remain unresolved. The smartest electric car ever. Besides the symbolic change of the name of the currency, the advent of the eco will change two things. Eight members of the West African Economic and Monetary Union (UEMOA) reached an agreement to use a new common currency called the ECO. One thing does not change, however: the indexation of the currency to the rate of the euro, which brings stability to the economies of the countries of the zone, but also makes them dependent on the monetary policy of the European Central Bank. Get real time updates directly on you device, subscribe now. An opinion shared by Lambert N’Galadjo Bamba, adviser to the Ivorian Ministry of Economy and Finance: “We had to update the roadmap due to the coronavirus crisis and give ourselves more time to work on convergence. Roewe Marvel R SUV becomes the first to support 5G V2X features, Introduced a special version of Apple AirPods Pro headphones at the price of the standard edition, Tesla shares are growing for the ninth day in a row, Elon Musk will very soon become the richest man on the planet, Prince William, volunteer in honor of mother Diana, US National Security Advisor resigns after Capitol storming, Congress ready to confirm Biden as next president, Germany Factory Orders Up More Than Expected in November; EUR / USD remains above 1.2300. The CFA has been used for 74 years and France will remain as the guarantor country in case of crisis. Previously, it was therefore noted that the eight countries using the CFA franc within it are extirpated. West Africa map English-speaking West African countries on Thursday criticised a move to rename the CFA franc used by former French colonies, saying the move jarred with plans to introduce … The ECO was the proposed name for the common currency that the West African Monetary Zone (WAMZ) planned to introduce in the framework of the Economic Community of West African States, or ECOWAS. West African countries will stop using the Financial Community of Africa (CFA) franc currency beginning sometime in 2020, Ivorian President Alassane Ouattara said Saturday. In view of this worrying data, it’s not surprising that the abandoning of the CFA franc – decided back in December 2019 by Presidents Alassane Ouattara and Emmanuel Macron, in favour of the “Eco”, the future common currency West African CFA-Franc nations "demands its money from France". List of countries that use the West African CFA franc currency. “The eco does not yet exist. 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. World Stock Market - Stock Markets, Business News, Financials. There will be this question in the subjects that will be debated at the next Africa-France summit in July 2021 ”, assures the Elysee. The union administers the West African CFA franc, now a Euro-pegged currency that is used in Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. The Covid has forced states to review their priorities but the epidemic is not the only reason for this sluggish implementation. West African countries will stop using the Financial Community of Africa (CFA) franc currency beginning sometime in 2020, Ivorian President Alassane Ouattara said Saturday. It’s a difficult debate with a lot of unspoken words, ”analyzes Togolese economist Kako Nubukpo. Critics called this a whitewash – despite the new name, it will still be pegged to the euro and still be backed by the Banque de France , leaving it open … UEMOA was created by a Treaty signed in Dakar on 10 January 1994, by the heads of state and governments of Benin, Burkina Faso, Côte … France-Africa relations CFA *Pegged: 1 EUR = 655.95700 XOF The West African CFA franc is the currency of eight independent states spanning over 3,500,000 km2 in West Africa: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger UEMOA and the 14 African member states of the Economic and Monetary Community of Central Africa (CEMAC) have been using two different types of CFA francs in central and west Africa since the colonial period. 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