No plans to devalue CFA Franc, says BCEAO and BEAC
The Central Bank of West Africa States (BCEAO) and that of Bank of the Central Africa States (BEAC) have said there are no plans to devalue their common currency, CFA Franc.
The Central Banks of the two sub-regions made the clarification during their annual meeting in the Ivorian commercial capital, Abidjan, in the wake of recent media speculations of a pending devaluation.
The CFA Franc, which is currently pegged to the Euro, was established on December 26, 1945. That was the day France ratified the post World War II Bretton Woods agreement and made the first declaration of parity to the International Monetary Fund (IMF).
This monetary zone brings together some 14 West and Central African countries, who formed a common monetary union (WAEMU/CEMAC).
WADR’s Abidjan Correspondent Suy Khaofi says at the just ended meeting, the two Central Banks made an assessment of the implementation of their cooperation programs in 2011 and theyrevealed the priority areas of their partnership for 2012.
The Governors of the BCEAO and BEAC have summed up the economic and financial situation in the two sub-regions.
In the CEMAC zone, they said the growth rate is expected to be 5% and in the UEMOA zone, it will be 1%, but according to Tiemoko Kone, governor of the BCEAO, the prospects are good in both sub-regions.
According to Nopolitas Abagas, Governor of the BEAC, this issue of devaluation of the CFA Franc was not on the agenda, because all indications are positive and all the countries sharing the same currency have development plans accepted by investors.
In the WAEMU zone, Ivory Coast, the economic hub of the CFA zone in West Africa, has just come out of a crisis but the effects on the sub-regional economy are now easing.
The expectations for Ivory Coast growth are good and strong. According to the BCEAO Governor, Ivory Coast development plan, when implemented, can boost the development of the sub-region and thus attract investors; this will not only be for the benefit of Ivory Coast, but the whole WAEMU zone.
The BEAC and BCEAO are working hand in hand for the greater good of the people within the CFA zone and, it must be done in a win/win atmosphere for the benefit of the economic zones.
The two central banks are committed to develop economic links to allow businesses in both sub-regions to get funding for their activities.
The effective implementation of the outcomes of the Abidjan meeting could improve the business trend in the WAEMU and CEMAC zones.