#303 CFA franc

The CFA franc is a common name for two separate currencies used in West and Central Africa. These currencies are guaranteed by the French Treasury and were historically associated with French colonial rule. As of my last knowledge update in September 2021, here is some information about the CFA franc:

Two CFA Francs: There are two versions of the CFA franc: the West African CFA franc (XOF) and the Central African CFA franc (XAF). These are used by different groups of countries in Africa.
Countries Using the CFA Franc: The West African CFA franc (XOF) is used by eight West African countries, including Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. The Central African CFA franc (XAF) is used by six Central African countries, including Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon.
History: The CFA franc was originally introduced by France during its colonial rule in Africa. After decolonization, these countries continued to use the CFA franc, which was pegged to the French franc. Later, the peg was shifted to the Euro.
Guarantee by the French Treasury: One of the distinctive features of the CFA franc is that it is guaranteed by the French Treasury. This means that the African countries using the CFA franc have a fixed exchange rate with the Euro, and the French Treasury holds a significant portion of their foreign exchange reserves. In return, these countries deposit their foreign exchange reserves with the French Treasury.
Controversy: The use of the CFA franc has been a subject of controversy and debate. Critics argue that it limits the economic independence of the African countries using it, as they don't have control over their monetary policies. Proponents argue that the stability it provides is beneficial.
Reforms: In December 2019, the countries using the CFA franc announced plans to reform the currency, including changing its name to the "eco" and reducing the amount of foreign exchange reserves held with the French Treasury. These reforms were aimed at giving the member countries more control over their monetary policy.
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