There are two ways to describe the decision to dissolve the CFA franc, said François Heisbourg, a senior advisor for Europe at UK think-tank the International Institute for Strategic Studies.
The first being that “West Africa loses a colonial relic and will now enjoy the benefits of monetary independence,” he wrote on Twitter. “[The second is that] Africa loses its European-backed version of the euro and will no longer enjoy the benefits of monetary stability.”
“The announced measures build on WAEMU’s [West African Economic and Monetary Union] proven track record in the conduct of monetary policy and external reserve management. In recent years, the WAEMU has recorded low inflation and high economic growth, the fiscal situation has improved, and the level of foreign exchange reserves has increased,” she said in a statement on Saturday.
“The reforms also maintain key elements of stability that have served the region well, including the fixed exchange rate with the euro and the guarantee of unlimited convertibility provided by France.”
Under the previous system, the French Ministry of Finance invested the 50% of reserves deposited in the French treasury in the French stock exchange with unknown returns, says Former African Union Ambassador to the US, Arikana Chihombori-Quao, an ardent campaigner for France to end its “colonial relationship” with CFA zone West African countries.
“We are giving France over $500bn a year, and no-one is talking about it,” Chihombori-Quao said in a video posted to Twitter in April 2019. She was dismissed from her position as AU Ambassador to the US in October 2019.
H.E. Dr Arikana Chihombori Quao
When colonizers left Africa (1958 – 1961)
France made Francophone countries sign a PACT to continue colonization
France said we built schools, roads, etc, it’s colonial debt you’ll pay into perpetuity
France takes over $500bn yearly from Africa pic.twitter.com/MnlZwfWnrg
— Izwe Lethu (@LandNoli) April 13, 2019