Home BUSINESS AFRICA: The Franc CFA will finally be replaced.

AFRICA: The Franc CFA will finally be replaced.

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CFA francs (West African currency) (MaxPPP TagID: dpacreative399305.jpg) [Photo via MaxPPP]

This fight against the currency, the FCFA, long led by many pan-Africanists, is likely to know its epilogue insofar as by 2020, it could be replaced by a new currency called “ECO”.

The FCFA has been at the heart of many debates between economists and experts in finance.

Some, especially Pan-Africanists, argue that this currency keeps the black continent in constant underdevelopment and general indigence. According to the critics of the FCFA, this currency is too strong for developing economies, as the system of accounts of operations that forced the African central banks to deposit 50% of their foreign exchange reserve with the French Treasury in return for the guarantee unlimited convertibility of their currency.

For others, this demonization of the FCFA is actually a campaign of misinformation insofar as this currency is a factor of stability of the countries that share it. Ivorian President Alassane Ouattara, during a visit to his French counterpart Emmanuel Macron on June 11, 2017, openly stated: “I have heard many statements about the CFA franc (…) I do not understand this false debate ( …) The CFA franc is our currency, it is the currency of countries that have freely chosen, since independence in the 60s (…) It is solid, it is appreciated, it is well managed (…) We We are very, very happy to have this currency which is stabilizing.

In any case, the 15 West African states should reiterate their commitment to have a common currency on June 29, 2019 in Abuja, Nigeria’s federal capital. To recall that Nigeria had always opposed such an idea but apparently an agreement would be found. The FCFA will become the “ECO” which could also replace seven other national currencies in 2020.