Changing from CFA franc to ‘eco’ decision was made on Saturday, after major debates among the 8 countries using the then Western CFA franc. This step by the Western African countries looks to be a stepping stone to creating a uniform currency among the 15 nations that use the CFA franc and come under the ECOWAS. This decision comes with people on both sides of the fence siding with either the pros or the cons of the decision.
The pros will see the Western African countries that used the CFA franc to no longer be still governed by the rules of French, to be able to invest the money where they see fit as a country and need to no longer have 50% of the reserves with the Bank of France.
The cons are with the people of the country believing that being associated with the French gave the currency stability and credibility and this could be no longer the case.
Since the announcement France will cut all institutional ties as well as withdrawing from the CBWAS board, monetary policy committee and the WAMU’s banking commission.
The new currency will have the same fixed exchange with the euro and France will still serve as a backup to WAMU countries.
The eight Western nations include; Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo.
CENTER FOR AFRICAN STUDIES
Center for Africa Studies (AFRAM) which located in Ankara, is an organization facilitating under the administration of African Affairs Council (AFAC). It makes various researches about Africa to enhance economic and cultural bounds between Africa and Turkey. AFRAM’s publishings has been shared with different institutions as they require to obtain.
Africa Observatory is one the publishing of AFRAM and it has been published each two weeks. It has been delivered to different institutions via e-mail.