CFA Franc Transformation
Franc CFA Scenarios
Note Pro Bono, 1997
Synopsis
In view of the disappearance of the French franc in 2002, the economic advantages of the mechanical pegging of the CFA franc are still uncertain. On the other hand, the implementation of the first two stages of European economic and monetary union has already generated indisputable costs, with massive capital flight and the overvaluation of the fcfa before its devaluation.
The costs of creating a cfa franc euro zone for African countries would then be added and reduce adjustment possibilities.
These countries should therefore refrain from seeking at all costs to anchor the fcfa to the euro.
Conversely, they should, as part of an active adaptation process:
- concentrate their efforts to achieve, by 2005, the West and Central African Economic and Monetary Union and integrate neighbouring non-member countries into it;
- prepare for the implementation of a regional mandate with a view to the completion of the African Economic and Monetary Union by 2010.
The promotion of the fcfa as an international currency is at this price.
transformation
Framework scenario for the transformation of the CFA zone in the perspective of the Euro, 1997
Synopsis
Warning
Executive Summary
Summary
Conclusions and recommendations
Introduction
1. fcfa Background
1.1. The analytical framework
1.2. CfaF specificity
2. Cfaf's evolution dynamics since 1990
2.1. Economic effects
2.2 Effects on the principles of the franc zone
3. CfaF foresight
3.1. The trend scenario: pegging the fcfa to the euro
3.2 Integration of neighbouring countries into West and Central African EMU 3.3. Regional mandate in African economic and monetary integration