Countries where CFA franc is used

The CFA franc (in French: franc CFA, "céfa", or just franc colloquially) is a currency used in twelve formerly French-ruled African countries, as well as in Guinea-Bissau (a former Portuguese colony) and in Equatorial Guinea (a former Spanish colony). French ( français,) is a Romance language spoken around the world by 118 million people as a native language and by about 180 to 260 million people This article is about the country For a topic outline on this subject see List of basic France topics. The Republic of Guinea-Bissau (ˈgɪni bɨˈsaʊ República da Guiné-Bissau ʁɛˈpublikɐ dɐ giˈnɛ biˈsau is a country in Western Africa, and one of the smallest Portugal, officially the Portuguese Republic (República Portuguesa is a country on the Iberian Peninsula. The Republic of Equatorial Guinea ( República de Guinea Ecuatorial,) is a country in Central Africa. Spain () or the Kingdom of Spain (Reino de España is a country located mostly in southwestern Europe on the Iberian Peninsula. The ISO currency codes are XAF for the Central African CFA franc and XOF for the West African CFA franc. ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established The Central African CFA franc ( French: franc CFA or simply franc, ISO 4217 code XAF) is the currency of six independent states The West African CFA franc ( French: franc CFA or simply franc, ISO 4217 code XOF) is the currency of eight independent states spanning

It has a fixed exchange rate to the euro: 100 CFA francs = 1 French (nouveau) franc = 0. A fixed exchange rate, sometimes called a pegged exchange rate, is a type of Exchange rate regime wherein a Currency 's value is matched to the value of Please update other articles as well to avoid contradiction within Wikipedia e 152449 euro; or 1 euro = 655. 957 CFA francs.

Although Central African CFA francs and West African CFA francs have the same monetary value against other currencies, West African CFA coins and banknotes are not accepted in countries using Central African CFA francs, and vice versa.

Name

Between 1945 and 1958, CFA stood for Colonies françaises d'Afrique ("French colonies of Africa"); then for Communauté française d'Afrique ("French community of Africa") between 1958 (establishment of the French Fifth Republic) and the independence of these African countries at the beginning of the 1960s. See also Government of France The Fifth Republic is the fifth and current republican constitution of France, which was introduced on Since the time of their independence, CFA can have two meanings (see Institutions below).

History

Creation

The CFA franc was created on December 26, 1945, along with the CFP franc. Events 1481 - Battle of Westbrook - Holland defeats troops of Utrecht. Year 1945 ( MCMXLV) was a Common year starting on Monday (link will display the full calendar The CFP franc (called the franc in everyday use is the Currency used in the French overseas possessions of French Polynesia, New Caledonia The reason for their creation was the weakness of the French franc immediately after World War II. The franc (represented by the franc sign ₣ or more commonly just F) is a former Currency of France. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including When France ratified the Bretton Woods Agreement in December 1945, the French franc was devalued in order to set a fixed exchange rate with the US dollar. The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states The franc (represented by the franc sign ₣ or more commonly just F) is a former Currency of France. Devaluation is a reduction in the value of a Currency with respect to other monetary units A fixed exchange rate, sometimes called a pegged exchange rate, is a type of Exchange rate regime wherein a Currency 's value is matched to the value of The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been New currencies were created in the French colonies to spare them the strong devaluation. France was a dominant empire in the world from the 1600s to the late 1960s possessing many colonies in various locations around the world René Pleven, the French minister of finance, was quoted as saying:

"In a show of her generosity and selflessness, metropolitan France, wishing not to impose on her far-away daughters the consequences of her own poverty, is setting different exchange rates for their currency. René Pleven (15 April 1901 – 13 January 1993 was a notable French politician of the Fourth Republic. The Minister for the Economy Industry and Employment ( ministre de l'Économie de l'Industrie et de l'Emploi) or Minister of Finance for short is one of the Metropolitan France (France métropolitaine or la Métropole, or colloquially l'Hexagone) is the part of France located in Europe, including "

Exchange rate

The CFA franc was created with a fixed exchange rate versus the French franc. The franc (represented by the franc sign ₣ or more commonly just F) is a former Currency of France. This exchange rate was changed only twice: in 1948 and in 1994.

Exchange rate:

• December 26, 1945 to October 16, 1948 – 1 CFA franc = 1. Events 1481 - Battle of Westbrook - Holland defeats troops of Utrecht. Year 1945 ( MCMXLV) was a Common year starting on Monday (link will display the full calendar Events 456 - Magister militum Ricimer defeats the Emperor Avitus at Piacenza and becomes master of the western Year 1948 ( MCMXLVIII) was a Leap year starting on Thursday (link will display the 1948 calendar of the Gregorian calendar. 70 FRF (FRF = French franc). This 0. 70 FRF premium is the consequence of the creation of the CFA franc, which spared the French African colonies the devaluation of December 1945 (before December 1945, 1 local franc in these colonies was worth 1 French franc).
• October 17, 1948 to December 31, 1959 – 1 CFA franc = 2. Events 539 BC - King Cyrus The Great of Persia marches into the city of Babylon, releasing the Jews from almost Year 1948 ( MCMXLVIII) was a Leap year starting on Thursday (link will display the 1948 calendar of the Gregorian calendar. Events 406 – Vandals, Alans and Suebians cross the Rhine, beginning an invasion of Gallia. The year 1959 ( MCMLIX) was a Common year starting on Thursday (link will display full calendar of the Gregorian calendar. 00 FRF (the CFA franc had followed the French franc's devaluation versus the US dollar in January 1948, but on October 18, 1948, the French franc devalued again and this time the CFA franc was revalued against the French franc to offset almost all of this new devaluation of the French franc; after October 1948, the CFA was never revalued again versus the French franc and followed all the successive devaluations of the French franc)
• January 1, 1960 to January 11, 1994 – 1 CFA franc = 0. Events 1009 - The Church of the Holy Sepulchre, a Christian church in Jerusalem, is completely destroyed by the Fatimid Year 1948 ( MCMXLVIII) was a Leap year starting on Thursday (link will display the 1948 calendar of the Gregorian calendar. New Year See also New Year The Ancient Romans began their consular year on January 1st since 153 BC Year 1960 ( MCMLX) was a Leap year starting on Friday (link will display full calendar of the Gregorian calendar. Events 1055 - Theodora is crowned Empress of the Byzantine Empire. Year 1994 ( MCMXCIV) was a Common year starting on Saturday (link will display full 1994 Gregorian calendar) 02 FRF (January 1, 1960: the French franc revalued, with 100 "old" francs becoming 1 "new" franc)
• January 12, 1994 to December 31, 1998 – 1 CFA franc = 0. New Year See also New Year The Ancient Romans began their consular year on January 1st since 153 BC Year 1960 ( MCMLX) was a Leap year starting on Friday (link will display full calendar of the Gregorian calendar. Events 475 - Basiliscus becomes Byzantine Emperor, with a coronation ceremony in the Hebdomon palace in Constantinople Year 1994 ( MCMXCIV) was a Common year starting on Saturday (link will display full 1994 Gregorian calendar) Events 406 – Vandals, Alans and Suebians cross the Rhine, beginning an invasion of Gallia. Year 1998 ( MCMXCVIII) was a Common year starting on Thursday (link will display full 1998 Gregorian calendar) 01 FRF (sharp devaluation of the CFA franc to help African exports)
• January 1, 1999 onward – 100 CFA franc = 0. New Year See also New Year The Ancient Romans began their consular year on January 1st since 153 BC Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) 152449 euro or 1 euro = 655. 957 CFA franc. (January 1, 1999: euro replaced FRF at the rate of 6. New Year See also New Year The Ancient Romans began their consular year on January 1st since 153 BC Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) Please update other articles as well to avoid contradiction within Wikipedia e 55957 FRF for 1 euro)

The 1960 and 1999 events were merely changes in the currency in use in France: the relative value of the CFA franc versus the French franc / euro changed only in 1948 and 1994.

The value of the CFA franc has been widely criticized as being too high, which many economists believe favors the urban elite of the African countries, which can buy manufactured goods cheaply at the expense of farmers who cannot easily export agricultural products. The devaluation of 1994 was an attempt to reduce these imbalances.

Countries and other territories

• 1949: French Somaliland (Djibouti) leaves
• 1960: Guinea leaves
• 1962: Mali leaves
• 1967: Réunion leaves for French franc
• 1973: Madagascar leaves (in 1972, according to another source)
• 1973: Mauritania leaves
• 1974: Saint-Pierre and Miquelon leaves
• 1984: Mali rejoins (1 CFA franc = 2 Malian francs)
• 1985: Equatorial Guinea joins (1 "franco" = 4 bipkwele)
• 1997: Guinea-Bissau joins (1 franc = 65 pesos)

European Monetary Union

In 1998, in anticipation of Economic and Monetary Union of the European Union, the Council of the European Union addressed the monetary agreements France has with the CFA Zone and Comoros and ruled that:

• The agreements are unlikely to have any material effect on the monetary and exchange rate policy of the Euro zone
• In their present forms and states of implementation, the agreements are unlikely to present any obstacle to a smooth functioning of economic and monetary union
• Nothing in the agreements can be construed as implying an obligation for the European Central Bank (ECB) or any national central bank to support the convertibility of the CFA and Comorian francs
• Modifications to the existing agreements will not lead to any obligations for the European Central or any national central bank
• The French Treasury will guarantee the free convertibility at a fixed parity between the euro and the CFA and Comorian francs
• The competent French authorities shall keep the European Commission, the European Central Bank and the Economic and Financial Committee informed about the implementation of the agreements and inform the Committee prior to changes of the parity between the euro and the CFA and Comorian francs
• Any change to the nature or scope of the agreements would require Council approval on the basis of a Commission recommendation and ECB consultation

Institutions

Strictly speaking, there actually exist two different currencies called CFA franc: the West African CFA franc (ISO 4217 currency code XOF), and the Central Africa CFA franc (ISO 4217 currency code XAF). Djibouti ( جيبوتي Jībūtī, Somali: Jabuuti) officially the Republic of Djibouti, is a country in the Guinea, officially Republic of Guinea (pronounced /ˈgɪni/ République de Guinée is a country in West Africa, formerly known as French Guinea Mali, officially the Republic of Mali (République du Mali is a Landlocked nation in Western Africa. Réunion ( French: Réunion or formally La Réunion; previously Île Bourbon) is an island located in the Indian Ocean, east of Madagascar, or Republic of Madagascar (older name Malagasy Republic) is an Island nation in the Indian Ocean off the southeastern Mauritania (موريتانيا Mūrītāniyā officially the Islamic Republic of Mauritania, is a country The Territorial Collectivity of Saint Pierre and Miquelon (Collectivité territoriale de Saint-Pierre-et-Miquelon is a group of small islands in the North Atlantic Ocean, the Mali, officially the Republic of Mali (République du Mali is a Landlocked nation in Western Africa. The franc was the independent currency of Mali between 1962 and 1984. The Republic of Equatorial Guinea ( República de Guinea Ecuatorial,) is a country in Central Africa. The ekwele or ekuele was the Currency of Equatorial Guinea between 1975 and 1985 The Republic of Guinea-Bissau (ˈgɪni bɨˈsaʊ República da Guiné-Bissau ʁɛˈpublikɐ dɐ giˈnɛ biˈsau is a country in Western Africa, and one of the smallest The peso was the currency of Guinea-Bissau from 1975 to 1997 and was divided into 100 centavos In economics a Monetary union is a situation where several countries have agreed to share a single currency amongst themselves The Council of the European Union is the principal decision making institution in the European Union (EU The Comoros (ˈkɒməroʊz; جزر القمر Juzur al-Qumur) officially the Union of the Comoros (Union des Comores الإتّحاد القمريّ Monetary policy is the process by which the Government, Central bank, or monetary authority of a country controls (i the Supply of Money, The exchange rate regime is the way a country manages its Currency in respect to foreign currencies and the Foreign exchange market. Euro Enlargement of the In economics a Monetary union is a situation where several countries have agreed to share a single currency amongst themselves The European Central Bank (ECB is one of the world's most important Central banks responsible for Monetary policy covering the 15 member countries of the A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states The franc ( French: franc comorien; Arabic: فرنك قمري ( ISO 4217 currency code KMF is the official Currency of Comoros Please update other articles as well to avoid contradiction within Wikipedia e The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established They are distinguished in French by the meaning of the abbreviation CFA. These two CFA francs have the same exchange rate with the euro (1 euro = 655. 957 XOF = 655. 957 XAF), and they are both guaranteed by the French treasury (Trésor public), but the West African CFA franc cannot be used in Central African countries, and the Central Africa CFA franc cannot be used in West African countries. The Trésor public ("Public treasury" is the national administration of the Treasury in France.

West African

Main article: West African CFA franc

The West African CFA franc (XOF) is just known in French as the Franc CFA, where CFA stands for Communauté financière d'Afrique ("Financial Community of Africa"). The West African CFA franc ( French: franc CFA or simply franc, ISO 4217 code XOF) is the currency of eight independent states spanning French ( français,) is a Romance language spoken around the world by 118 million people as a native language and by about 180 to 260 million people It is issued by the BCEAO (Banque Centrale des États de l'Afrique de l'Ouest, i. The Central Bank of West African States (Banque Centrale des États de l'Afrique de l'Ouest BCEAO is a Central bank serving the eight West African countries which e. "Central Bank of the West African States"), located in Dakar, Sénégal, for the 8 countries of the UEMOA (Union Économique et Monétaire Ouest Africaine, i. For the Dakar Rally see Dakar Rally. For the Israeli submarine see INS Dakar. Senegal (le Sénégal officially the Republic of Senegal, is a country south of the Sénégal River in western Africa. e. "West African Economic and Monetary Union"):

• Benin
• Burkina Faso
• Côte d'Ivoire
• Guinea-Bissau
• Mali
• Niger
• Sénégal
• Togo

Central African

Main article: Central African CFA franc

The Central Africa CFA franc (XAF) is just known in French as the Franc CFA, where CFA stands for Coopération financière en Afrique centrale ("Financial Cooperation in Central Africa"). The West African Economic and Monetary Union (or UEMOA from its name in French, Union économique et monétaire ouest-africaine) is an organization Benin (bə'nɪn officially the Republic of Benin, and also known as Benin Republic, is a country in Western Africa. Burkina Faso (bɚˌkiːnəˈfɑːsoʊ burr-KEE-na FAH-soh) also known by its short-form name Burkina, is a Landlocked nation in West Africa Côte d'Ivoire (ˌkoʊt divˈwɑː(r ' in English, kot diˈvwaʀ in French) or Ivory Coast, officially the Republic of Côte d'Ivoire, is a The Republic of Guinea-Bissau (ˈgɪni bɨˈsaʊ República da Guiné-Bissau ʁɛˈpublikɐ dɐ giˈnɛ biˈsau is a country in Western Africa, and one of the smallest Mali, officially the Republic of Mali (République du Mali is a Landlocked nation in Western Africa. Niger ( or /ˈnaɪdʒɚ/) officially the Republic of Niger, is a Landlocked country in Western Africa, named after the Niger River. Senegal (le Sénégal officially the Republic of Senegal, is a country south of the Sénégal River in western Africa. TOGO was a Japanese roller coaster design company famous for inventing the Stand-up roller coaster. The Central African CFA franc ( French: franc CFA or simply franc, ISO 4217 code XAF) is the currency of six independent states French ( français,) is a Romance language spoken around the world by 118 million people as a native language and by about 180 to 260 million people It is issued by the BEAC (Banque des États de l'Afrique Centrale, i. The Bank of Central African States (Banque des Etats de l'Afrique Centrale BEAC is a Central bank that serves six Central African countries which form the Economic e. "Bank of the Central African States"), located in Yaounde, Cameroon, for the 6 countries of the CEMAC (Communauté Économique et Monétaire de l'Afrique Centrale, i. Yaoundé, (jɑːuːnˈdeɪ is the Capital city of Cameroon and second largest city in the country after Douala. The Republic of Cameroon is a unitary republic of central and western Africa. e. "Economic and Monetary Community of Central Africa"):

• Cameroon
• Central African Republic
• Chad
• Republic of the Congo
• Equatorial Guinea
• Gabon

Interestingly, in 1975, Central African CFA banknotes were issued with an obverse unique to each participating country, and common reverse, in a fashion similar to euro coins. The Economic and Monetary Community of Central Africa (or CEMAC from its name in French, Communauté Économique et Monétaire de l'Afrique Centrale The Republic of Cameroon is a unitary republic of central and western Africa. Central Africa|Central African FederationThe Central African Republic ( CAR) République Centrafricaine ʀepyblik sɑ̃tʀafʀikɛn or Centrafrique) is a Landlocked Chad (Tchad تشاد Tshād) officially known as the Republic of Chad, is a Landlocked country in Central Africa. The Republic of the Congo (République du Congo Kongo: Repubilika ya Kongo; Lingala: Republiki ya Kongó) also known as Congo-Brazzaville The Republic of Equatorial Guinea ( República de Guinea Ecuatorial,) is a country in Central Africa. Gabon (gəˈbɒn or /gaˈbõ/ in French) is a country in west central Africa sharing borders with Equatorial Guinea, Cameroon, Republic

Equatorial Guinea, the only former Spanish colony in the zone, adopted the CFA in 1984. The Republic of Equatorial Guinea ( República de Guinea Ecuatorial,) is a country in Central Africa.

See also

• Economy of Africa
• Comorian franc
• Currencies related to the euro
• CFP franc

External links

• History of the CFA franc
• Franc zone information at Banque de France (in English)
• (French) Franc zone information at Banque de France (in French, but more extensive than the English version)
• Decision of the Council of Europe on 23 November 1998 regarding the CFA and Comorian francs
• "For better or worse: the euro and the CFA franc", Africa Recovery, Department of Public Information, United Nations (April 1999)

Other

• Central Bank of Madagascar
• (French) Passé et Avenir du Franc C.F.A.
• The CFA franc zone and the EMU