France has passed the bill that ends the use of the CFA franc. It was disclosed by the spokeswoman for the French government, Sibeth Ndiaye. Although, this said bill was adopted on Wednesday, the 20th of May, by the French Council of Ministers.
“As the President of the Republic has been able to stress, this figurative end was to be part of a renewal of the relationship between France and African countries,” she said. Although, “It was during an official visit to Ivory Coast in December 2019 that President Macron and French West African leaders met. They announced a historic reform of monetary cooperation that was to lead to the end of the CFA franc.”
What is the CFA franc? its initials come from the French words for African Financial Community. It was launched on December 26, 1945 as a “franc of the French colonies of Africa.” Fourteen nations, divided into West and Central African groups, use the currency today. Meanwhile, with a total of 155 million, these people account for 14 percent of Africa’s population. In addition, it accounts for 12 percent of its GDP, according to the International Monetary Fund (IMF).
France ends the CFA, and that marks the end of the centralization of foreign exchange reserves. Particularly of the eight West African states with the French Treasury. The new bill passed by France validates the end of the CFA franc; to the newly advanced Eco. A new currency to be adopted by the ECOWAS. This means, the Central Bank of West African States will not deposit half of its foreign exchange reserves with the Bank of France. Meanwhile, France will also have to withdraw its presence from the governing figures.