As part of the agreement, the West African French-speaking countries will cut some of the financial links with Paris that have underpinned the region’s common currency since its creation.
Several countries belonging to the West African Economic and Monetary Union (UEMOA) were French colonies using the French West African franc, including the Ivory Coast, Dahomey, French Sudan, Mauritania, Niger, Senegal, Togo and Upper Volta. As those colonies gained independence, they continued to use the CFA France for their currency. West African countries will stop using the Financial Community of Africa (CFA) franc currency beginning sometime in 2020, Ivorian President Alassane Ouattara said Saturday. The CFA pegs to the euro. The West African CFA franc (XOF) is the shared currency of eight independent states in West Africa.

When created it was pegged to the French franc and is still pegged to the euro today. Investopedia uses cookies to provide you with a great user experience.

GNF, or the Guinea franc, is the currency of the Republic of Guinea. Mali, also known as French Sudan, was the only independent colony to create a national currency in 1961. However, by 1984, Mali returned to use the CFA franc, with an exchange of 1 CFA France to 2 Malian francs. The currency has faced continual devaluation due to inflation. Previously, French colonies had their currencies pegged to the French franc. Eight West African countries have agreed to change the name of their common currency to the Eco, finally cutting ties with the CFA franc. 'CFA franc' can refer to either the Central African CFA franc, abbreviated  The Eco will still be pegged to The euro but the rule that member states keep 50 percent of reserves with French treasury will be removed.Eight West African countries have agreed to change the name of their common currency to the Eco finally cutting ties with the CFA franc.The CFA franc, linked to former colonial ruler France has always been condemned for its representation of neo-colonialism.Since 1945, the CFA franc has been the currency used by French colonies, and the usage of the currency continued after independence.Reports indicate that the Eco will still be pegged to The euro but the rule that member states keep 50 percent of reserves with French treasury will be removed. This is brought about by the countries depositing 50 percent of their reserves with the Bank of France, which guarantees payments into euros even if a CFA member state cannot cover import payments. The CFA franc zone is made up of the two independent unions of the West African Economic and Monetary Union and the Central Africa Economic and Monetary Community. Furthermore, the French representative on the board of regional central bank will be removed, giving autonomy to the body.Commenting on the development during a news conference Ivory Coast’s President Alassane Ouattara was quoted by Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo currently use the currency. Along with the Central African CFA franc (XAF), the West African CFA franc (XOF) makes up the currency for most of central and west Africa. The CFA franc is one of two regional African currencies backed by the French treasury with pegging to the euro. The West African CFA franc uses both coins and banknotes, with the franc … Third World is an outdated and offensive phrase historically used to describe economically developing nations. The offers that appear in this table are from partnerships from which Investopedia receives compensation. NGN is the currency code for the Nigerian naira, the official currency of the Nigerian Federation. Eight West African countries have agreed to change the name of their common currency to the Eco finally cutting ties with the CFA franc.The CFA franc, linked to former colonial ruler France has always been condemned for its representation of neo-colonialism. All the countries are former French colonies except Guinea-Bissau.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 Monetary Union (WAEMU).The proposed changes will only affect the West African form of the currency, and not the Central African CFA .This latest announcement has been received with positive reactions and paves the way for further integration of the continent.Supporters of a single currency say it will facilitate trade, lower transaction costs and payments amongst ECOWAS’ 385 million people.The Eco is expected to be adopted in 2020.The target launch date for the regional bloc of countries in West Africa’s single currency has been postponed several times; in 2005, 2010 and 2014; since the concept first arose in 2003.A report by the African Development Bank Group (AfDB) indicates that for countries to meet the 2020 deadline for the single currency, the region needs to align with its monetary and fiscal policies expeditiously.Countries are required to meet a ten convergence criteria, set out by the West African Monetary Institute (WAMI), by the 2020 deadline. 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 ; By using Investopedia, you accept our The CFA franc, backed by the French treasury, refers to both the Central African CFA franc and the West African CFA franc and is used by 14 countries. The XOF uses both coins and Call 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.. West African CFA Franc - XOF: The currency of eight independent states in West Africa.

DAKAR, Senegal. In return, however, the French treasure required large deposits of their The CFA franc is the common currency of the 14 African countries belonging to the Franc Zone.

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