The bill which confirms the end of the CFA franc was adopted Wednesday in the Council of Ministers, announced government spokeswoman Sibeth Ndiaye. This text, "eagerly awaited" by the countries of the West African Monetary Union, validates the transformation of the CFA franc, which will become the Eco by maintaining the parity fixed with the Euro, as well as the end of the centralization of reserves West African States' exchange rates with the French Treasury, in accordance with the agreement concluded at the end of December between France and the States of the West African Monetary Union, she underlined.
"Renewal of the relationship between France and Africa"
This reform, recalled the spokesperson, results from the cooperation agreement signed on December 21, 2019 between Emmanuel Macron and the governments of the member states of the West African Monetary Union, which had announced this historic reform of monetary cooperation between France and these African states must lead to the end of the CFA franc.
"This symbolic end was to be part of a renewal of the relationship between France and Africa and write a new page in our history," she said.
On December 21, eight West African countries and France had decided on this major reform of the CFA franc, which will change its name to be called Eco in 2020, announced Ivorian President Alassane Ouattara in the presence of the French president. The CFA franc was "perceived as one of the vestiges of Françafrique", said Emmanuel Macron.
Reform negotiated during the second half of 2019
The Central Bank of West African States (BCEAO) will no longer have to deposit half of its foreign exchange reserves with the Banque de France, an obligation that was perceived as a humiliating dependence on France by critics of the CFA franc. It was also decided to withdraw France from the governance bodies in which it was present.
The fixed parity with the euro of the CFA franc, the future Eco, must be maintained (1 euro = 655.96 CFA francs). This point is likely to change when the common West African currency is born.
The reform was negotiated throughout the second half of 2019 between France and the eight countries of the West African Economic and Monetary Union (UEMOA): Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. It does not currently concern the six Central African countries which use the CFA franc but form a separate monetary zone.