What is the CFA franc ?

In 1945, as a colonial power, France introduced a currency in various African countries that was initially linked to the value of the French franc: the “CFA franc”, “Colonies Francaises d’Afrique” franc.
The CFA has remained the valid currency in most of the countries affected, even after their independence. After France joined the euro zone, France and the other members of the euro zone set a fixed exchange rate to the euro.

Of the 14 countries in which the CFA franc is still a means of payment today, 8 countries belong to the “West African Economic and Monetary Union” (UEMOA):
Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, Togo

In these countries, the CFA franc bears the name of
Franc de la Communauté Financière d’Afrique

Another 6 countries whose currency is the CFA franc belong to the “Economic and Monetary Community of Central Africa” (CEMAC):
Cameroon, Central African Republic, Republic of the Congo, Gabon, Equatorial Guinea, Chad

In these countries, the CFA franc bears the name of
Franc de la Coopération Financière en Afrique Centrale

“The fate of the CFA is decided in Paris and Frankfurt. But the priorities of Europe are not those of the African countries” (Demba Moussa Dembele)

How does the colonial system CFA franc work today?

• CFA franc banknotes are produced in France.
• Currently about 656 CFA franc are exchanged for 1 euro.
• France guarantees the convertibility to the euro and decides alone on revaluation or devaluation of the CFA franc against the euro.
• The two central banks of the CFA’s African currency areas in Yaoundé (Cameroon) and Dakar (Senegal) must deposit 50% of their foreign exchange reserves permanently with the French central bank.

What does the colonial system CFA franc mean for the people and the economy in the affected African states?

• Pegged to the “strong” euro, exports from the CFA currency zone are too expensive and thus not competitive with non-euro states. It is as if exports from the CFA zone were burdened with a tax.
• Pegged to the “strong” euro, imports from outside the CFA zone are too cheap. Imports therefore prevent and displace their own products. It is as if imports into the CFA zone are subsidized.
• The CFA countries are deprived of the opportunity to pursue their own economic and development policies, as they have very limited access to their own financial resources. They do not receive more than 3% of their own funds on loan.

What consequences does this have for the 155 million people in the CFA currency area?

• Domestic producers have no way of building labor-intensive production lines (lack of liquidity and export opportunities).
• Instead, valuable raw materials (cocoa, coffee, cotton, palm oil, rubber) and raw materials (gold, oil, natural gas, uranium, manganese, diamonds) are exported abroad unprocessed. The dependence on world market prices and compulsory contracts below world market prices deprive the CFA countries of their natural wealth.
• The CFA countries are flooded with cheap products from all over the world, which are produced elsewhere under equally poor conditions.
• The CFA countries lack the compulsory foreign exchange reserves at the French central bank for future investments in infrastructure, education and health.
• The euro convertibility of the CFA franc promotes capital flight from the CFA currency zone, which enriches corrupt elites from these countries.

CFA must disappear!

For a sovereign African common currency!

Enough’s enough:

African economy for Africa!

That’s enough:

Africa’s money must not be deposited in banks of France!

Africa’s money belongs to Africa!

France:

Hands off Africa’s money!

Away with the CFA!

CFA = means French colonial currency in Africa

     = means Exploitation of Africa by Europe