CFA Franc Zone

CFA Franc Zone

A collective term for the countries that use either the Central African CFA franc or the West African CFA franc, which are both guaranteed by the French government. The CFA franc zone consists of Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea, and Gabon (for the Central African franc), and Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo (for the West African franc).
References in periodicals archive ?
Anchor currency and real exchange rate dynamics in the CFA Franc zone. Economic Modelling 33: 722-732.
He spoke to African Business on topics ranging from Gabon's relationships with foreign com- panies, his country's recent experience with the IMF and the pros and cons of being a part of the CFA franc zone.
He spoke to African Business on topics ranging from Gabon's relationships with foreign companies, his country's recent experience with the IMF and the pros and cons of being a part of the CFA franc zone.
Both are collectively called CFA Franc Zone, both have convertibility of currency guaranteed by France and are associated with successful systems/supranational central banks established in 1948 with stable peg levels due to "stronger institutions and more policy transparency" (Gulde 2008: 3; Boughton 1991).
We consider that the monetary arrangement for the CFA franc zone mitigates the risks related to substantial exchange rate volatility and helps contain inflation, with temporary price spikes being mostly related to commodity price swings and weather-related shifts in agricultural production.
The central bank of the eight-nation West African CFA franc zone, has kept its interest rate steady, according to Reuters.
The Central African CFA franc zone is composed of six independent states: Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon.
The CFA franc zone; common currency, uncommon challenges.
Question: Could you explain to our readers, what are the principle mechanisms of the CFA Franc Zone?
Furthermore, during a public hearing organised on October 27 by the Committee for the Development of Cooperation between the Euro and the CFA Franc, the majority of delegates underlined the positive effects of linking the 15 countries of the CFA Franc zone with the single currency.
This chapter contrasts the experience of three surviving monetary unions (the Belgium-Luxembourg Union, the CFA Franc Zone, and the East Caribbean Currency Area) with three that were not successful (the East African Community, the Latin Union, and the Scandinavian Union).
According to Reuters, the heads of state of central Africa's CFA franc zone are to audit their central bank's investments with France-based Societe Generale (SOGN.PA).