West African CFA Franc


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West African CFA Franc

The currency of several former French colonies in West Africa, namely Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. It was introduced in 1945 to spare French colonies from the severe devaluation necessary to the French franc following World War II. Between 1949 and 1999, it was pegged to the French franc. Since then, it has been pegged to the euro. While it is of equal value to the Central African CFA franc, the two currencies are not interchangeable.
References in periodicals archive ?
It's the largest economy in the eight-nation West African CFA franc currency zone.
(45) Likewise, the West African CFA Franc zone is composed of eight independent states: Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau, Mali, Niger, Senegal, and Togo.
Intra-regional barriers are also falling slowly through such blocks as COMESA, SADC, ECOWAS, and the respective Central and West African CFA franc zones which share common euro pegs and tariff regimes.
The CFA franc stands for the West African CFA franc and the Central African CFA franc, two currencies that, even though separate, are in practice interchangeable and which have a fixed exchange rate to the euro.
Eight of the ECOWAS countries--Benin, Burkina Faso, Guinea-Bissau, Cote d'Ivoire, Mali, Niger, Senegal, and Togo--already use a shared currency: the West African CFA franc.
Asked if the Ivorian currency is acceptable as a medium of exchange in Ejigbo market, Chief Oguntola, said: 'Traders don't take West African CFA franc instead of naira.
Most of the region's former French colonies -- Be- nin, Burkina Faso, Cote d'Ivoire, Mali, Niger, Senegal, and Togo have been using the West African CFA franc since colonial times.
Most of the region's former French colonies - Benin, Burkina Faso, Cote d'Ivoire, Mali, Niger, Senegal, and Togo have been using the West African CFA franc since colonial times.
A combination of factors, including the IMF debt programs, revitalized economic activity in some countries, plus the relatively weakness of the euro, have all helped to hold back pressure on the Central Africa CFA franc and the West African CFA franc, which are both pegged to the euro.
Africa has seen success in issuing Sukuk in Sub Saharan Africa, and West Africa in particular in the West African CFA franc (XOF), which minimises exposure to FX risk for domestic issuers and investors.
The central bank of the eight-nation West African CFA franc zone, has kept its interest rate steady, according to Reuters.

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