History of the CFA Franc

Definition

The CFA Franc is the common currency of 14 African countries which are members of the Franc Zone, namely :
• Benin, Burkina, Côte d'Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo which form the West African Economic and Monetary Union (WAEMU), whose common central bank is the Central Bank of West African States (BCEAO) ;
• Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea and Chad which form the Central Africa Economic and Monetary Community (CEMAC), whose common central bank is the Bank of Central African States (BEAC).

History

The CFA Franc was created on December 26, 1945, the day when France ratified the Bretton Woods agreement and made its first declaration of parity to the IMF.
At that time, it was standing for Franc des Colonies Françaises d'Afrique (Franc of the French Colonies of Africa). In 1958, it becomes Franc de la Communauté Française d'Afrique (Franc of the French Community of Africa). Nowaday, the denomination CFA Franc means franc de la Communauté Financière d'Afrique (franc of the African Financial Community) for WAEMU member States, and franc de la Coopération Financière en Afrique Centrale (franc of Financial Cooperation in Central Africa) for countries belonging to the BEAC area.

Parity

Creation of the CFA F December 26, 1945 1 CFAF = 1.70 FF
Devaluation of the French Franc October 17, 1948 1 CFAF = 2.00 FF
Institution of the new FF 1958 1 CFAF = 0.02 FF
Devaluation of the CFA F January 12, 1994 1 CFAF = 0.01 FF

FF = French Franc

Convertibility

• guaranteed in French francs by the French Treasury.
• possible in foreign currencies on the Paris exchange market, with the French Franc as standard.
• total freedom of transfer within the Franc Zone.
• repurchase of CFA banknotes suspended since August 2, 1993. Previously and until August 1, 1993, the convertibility of banknotes was free and unlimited.
• repurchase of CFA banknotes between the WAMU zone and BEAC zone suspended as from September 1993.

http://www.bceao.int
Central Banks of West African States / Banque Centrale des Etats de l’Afrique de l’Ouest