The West African colonies and territories using the CFA franc were Ivory Coast, Dahomey, French Sudan, Mauritania, Niger, Sénégal, Togo and Upper Volta. READ MORE Mali/CFA franc: Topics to tackle during Macky Sall’s visit with Macron. CFA Franc - Nations Using This Currency 1 IMF Country Report No. The CFA franc sometimes gives rise to questions and misconceptions. The CFA franc monetary system is designed to guarantee the franc currency in international markets, while simultaneously preventing overdraft and inflation in CFA member countries. When the CFA franc was first created, it was pegged to the French franc at 50 CFA francs to 1 French franc. Among the countries that border with Switzerland are: Austria, Germany (Euro / Swiss Franc converter), France and Italy.In 2016 Switzerland received a total of $ 2.493.570.398 USD in remittances. With the exception of a few early issues, the notes of the BCEAO carry a letter to indicate the country of issuance. Now, 14 African countries are giving the French 50% of their reserves “to ensure the CFA Franc in the countries remains convertible into Euros”. Thanks in part to the CFA franc, we have witnessed the hitherto unseen legal integration of the countries belonging to the monetary union through the creation of the OHADA [Organisation for the Harmonisation of Corporate Law in Africa] zone. The Franc Zone, which is based on a desire to ensure greater monetary and financial stability, brings together 15 Central and West African countries, plus Comoros. Porto-Novo 2 The Central African CFA franc is of equal value to the West African CFA franc, and is in circulation in several central African states. CFA franc hugely unpopular The CFA Franc, first introduced by France in 1945, has long been attacked as a colonial relic, triggering protests in countries such as Senegal and Ivory Coast. CFA Franc: One of two African regional currencies backed by the French treasury, and pegged to the euro. Calls to overhaul the West African CFA franc, a currency tied to the euro and historically rooted in French colonial rule, raise a host of thorny problems, analysts say. These also featured the familiar tribal mask. Six other countries use a Central African version of the French-backed currency. Before the Eco can replace the CFA franc, as announced in Abidjan on 21 December 2019, a number of technical, legal and political hurdles must be cleared. Niamey 7 All carried the name "Afrique Occidentale Française". Technically, two separate CFA francs are in circulation, each with its own central bank, in Central and West Africa. Two different CFA Franc users. The CFA franc was born in 1945 and at the time stood for “Colonies Francaises d’Afrique” (French Colonies in Africa). The pillars of the CFA franc Like other colonial empires – the UK, with its sterling zone, or Portugal, with its escudo zone, France had its franc zone. Some policymakers have argued that the CFA franc be tied to a basket of currencies rather than one currency as it currently is. This list of CFA franc using countries contains various bits of information, such as each country's official language and form of government. Under French control the currency continues to circulate in fourteen African countries divided into two monetary zones in West and Central Africa. Some credit the French-backed common currency with fostering stability; others decry it as a colonial hangover These coins, however, proved to be unpopular in many regions and were discontinued after 1996. 14 countries tied to the euro . The CFA franc was introduced to the French colonies in West Africa in 1945, replacing the French West African franc. The CFA Franc Zone includes fifteen African countries. The change was welcomed because of a perception that the old notes were dirty and disease-ridden. AFRICANGLOBE – The West African Economic and Monetary Union (UEMOA) is an organization of eight West African states. 3 At that point, the French franc was converted to the euro at 6.55957 to 1. The CFA zone countries enjoy low inflation, low interest rates relative to those in other parts of Africa, and strong trade links with France. There is solely two pieces of advice around timing we can give. CFA Franc to Eco: Implications for West Africa Monetary Union December 24, 2019 The much awaited independence of the West African Monetary Union (WAMU) made up of eight Francophone West African Countries from the French Monetary authority, La Bourse Francais has come to reality with the agreement between West Africa’s monetary union and France. France guarantees the value of the CFA franc, and in return, the countries that use it are required to keep 50 percent of their foreign exchange reserves with the French treasury. It was devalued in 1994 and then remained at 100 to 1 until France adopted the euro in 1999. The CFA franc is the common currency of the 14 African countries belonging to the Franc Zone. Why did French colonial authorities create it and how does it work? A bimetallic 250 francs was introduced in 1992 to reduce excess change. Banque Centrale des États de l'Afrique de l'Ouest, Economic Community of West African States, "West Africa renames CFA franc but keeps it pegged to euro", "West Africa's new currency, the Eco: Rebrand or fresh start? Unlike some coins of the Central African CFA franc, no modern circulation coins have been issued depicting the names of individual member states, nor any letters or marks of indication. It was established to promote economic integration among countries that share the Communauté Financière d’Afrique (CFA) franc as a common currency. The CFA Franc Zones. While CFA Franc countries have performed better in terms of inflation stability, concerns have been raised as a result of lower commodity prices and (particularly for oil and metal exporters) lower growth since 2014. CFA francs are used in fourteen countries: twelve nations formerly ruled by France in West and Central Africa (excluding Guinea and Mauritania, which withdrew), plus Guinea-Bissau (a former Portuguese colony), and Equatorial Guinea (a former Spanish colony). 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. Some African countries are yet to free itself from the French parasite. Businesses benefit from the stability of the CFA franc and the credibility of its currency exchange rate peg to the euro. 12 of the countries are former French colonies and Equatorial Guinea, a former Spanish colony joined in 1985 while Guinea Bissau, a … French and international media had long taken its existence as something of a dirty secret, even though it is used by some 187 million people. DAKAR, Senegal. 04/87. Bamako 6 Bitcoin et franc cfa is decentralized. Some studies have shown that the CFA franc has reduced intra-regional trade, made countries dependent on exporting a limited number of goods, narrowed the industrial base, and made the economies of these nations very vulnerable to external shocks. ", "The Many Varieties of West African States Banknotes", West African States new 500-franc note to be issued 30 November 2012, "How the France-backed African CFA franc works as an enabler and barrier to development", Union Economique et Monétaire Ouest Africaine (UEMOA), "The exchange rate of the CFA Franc BCEAO", Saint Helena, Ascension and Tristan da Cunha, https://en.wikipedia.org/w/index.php?title=West_African_CFA_franc&oldid=991496717, 1945 establishments in French West Africa, Articles with French-language sources (fr), Articles containing Portuguese-language text, Articles containing Kinyarwanda-language text, Articles containing Italian-language text, Articles containing Luxembourgish-language text, Creative Commons Attribution-ShareAlike License, 500, 1,000, 2,000, 5,000, 10,000 francs CFA, 1, 5, 10, 25, 50, 100, 200, 250, 500 francs CFA, A (Côte d'Ivoire / Ivory Coast); B (Benin); C (Burkina Faso); D (Mali); H (Niger); K (Senegal); T (Togo); S (Guinea-Bissau), A (Côte d'Ivoire / Ivory Coast); B (Benin); C (Burkina Faso); D (Mali); H (Niger); K (Senegal); T (Togo), Banque Centrale des États de l'Afrique de l'Ouest (Central Bank of the West African States) building, Dakar; man, Sawfish shaped brass weight of the Ashanti people for weighing gold dust; Computerization in West Africa: hand touching a touch tablet PC which is connected to West African countries on the outline map of Africa, Sawfish shaped brass weight of the Ashanti people for weighing gold dust; symbols of education and health, Sawfish shaped brass weight of the Ashanti people for weighing gold dust; transportation, Sawfish shaped brass weight of the Ashanti people for weighing gold dust; agriculture, Sawfish shaped brass weight of the Ashanti people for weighing gold dust; telecommunications, This page was last edited on 30 November 2020, at 10:53. 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