By setting fire a 5,000 FCFA ticket during a rally in Dakar, polemicist Kémi Séba has relaunched a heated debate. But this gesture provoked an avalanche of reactions on the CFA, the last colonial currency still used.
Since the Bretton Woods agreements of 1945, the CFA franc is the common currency of the franc zone . This zone comprises 14 countries. Nearly 155 million people use the CFA franc. the Banque de France is the third player in this monetary system.
The CFA franc is pegged to the euro according to a fixed parity decided by France. In return, countries in the franc zone have the obligation to deposit 50% of their foreign exchange reserves with the French Treasury. It is also in France that are printed CFA franc notes, thousands of kilometers from African central banks.
We can not say for now if Russia is the one that forces France to permanently end this currency or not mas according to our sources, there have been secret talks between France and African countries anxious to finally put a term to this currency. France has finally agreed to end this currency under certain conditions.
Here are the “conditions” that our sources would have obtained at the secret meeting.
The first condition that would have been imposed by France was that the new currency be printed in France, and not in Africa. Secondly, France will have priority over development projects in these African countries,
Third, France would have a VETO right on the functionality of this new currency, Fourth, the exchange rate of the new currency and the euro will remain at 650 euros for 1 euro to guarantee French investments in Africa
Finally the exploitation of the raw material will be favored in France unless France does not need it that other countries can exploit.
Our source did not tell us if the African countries that participated in the secret negotiation accepted the conditions but one thing is clear, France is ready to put an end to this currency. We can not verify this information yet but stay tuned