🔹 CFA Franc: Post-Colonial Currency Control
The CFA franc is a colonial-era currency still used by 14 African countries across West and Central Africa. It was created by France in 1945 and remains guaranteed and partly controlled by the French Treasury. Two versions exist today: the West African CFA franc (XOF) and the Central African CFA franc (XAF), both pegged to the euro.
Until recent reforms in 2020, 50% of the foreign reserves of these countries were held in the French Treasury. France also holds seats on the boards of the regional central banks and influences monetary policy, limiting the sovereignty of participating African nations. These countries cannot adjust their exchange rates or issue currency without approval from French institutions.
Proponents argue that the CFA franc ensures low inflation and monetary stability, but critics say it blocks economic autonomy and locks African economies into a system designed to benefit France. Countries using the CFA franc cannot revalue or devalue their currency based on local needs, making recovery from crises slower and export competitiveness harder to achieve.
Economist Ndongo Samba Sylla and journalist Fanny Pigeaud have described the CFA franc as a “monetary tool of domination,” enabling France to continue extracting value from African economies long after formal colonialism ended. Political leaders such as Thomas Sankara of Burkina Faso also publicly denounced the currency system before his assassination.
In recent years, regional blocs such as ECOWAS have proposed creating a new currency, the Eco, to replace the CFA franc and restore monetary independence. However, the transition has faced repeated delays.
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📚 References with Links:
• Sylla, N.S. & Pigeaud, F. (2018). The CFA Franc: French Monetary Imperialism in Africa – Full PDF via ROAPE
• ECOWAS Commission – Monetary Cooperation Programme Reports
• UEMOA (West African Economic & Monetary Union) – Official Central Bank site
• CEMAC (Central African Economic and Monetary Community) – BEAC Central Bank site
• Review of African Political Economy – ROAPE Journal on CFA Franc
• IMF Regional Economic Outlook – WAEMU & CEMAC reports
• French Ministry for Europe and Foreign Affairs – Explanation of CFA Reforms (2020)
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