About a month ago, AfricaCelebrities.com reported that for the first time, a Head of State from Africa’s CFA currency region has openly spoken about the politically and economically sensitive subject related to the CFA franc that could ruin relationship with colonial master France.

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This was in the person of Benin’s President, Patrice Talon who ordered that his country’s foreign currency reserves colonially deposited in French Central Bank be immediately withdrawn.

And as the saying goes, coming events cast their shadows. Today, the CFA franc will now be renamed the Eco, which is the new currency to be used by member states of ECOWAS.

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Under the new deal struck between ECOWAS and France, this will also involve cutting off some of the financial links between Francophone West African countries and France.

The Economic Community of West African States (ECOWAS) has a combined population of 385 million and was set up in 1975.

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It comprises Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.

Eight of these countries use one currency, the CFA franc. Those are Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo.

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As a result of the policy to adopt the Eco, West Africa’s monetary union agreed with France under a deal to ensure that the Eco will remain pegged to the Euro.

The eight African countries for years have had their reserves kept in the French Treasury but they will no longer have to keep 50% of their reserves in the French Treasury.

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There will no longer also be a French representative on the currency union’s board.

For decades Francophone nations in West Africa have had the management of their currency done in France.

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Their financial reserves have always been planned and controlled from France despite gaining independence many years ago.

Source: AfricaCelebrities.com

The post Ecowas Replace CFA Franc With ECO, Cuts Financial Ties With France appeared first on AfricaCelebrities.Com.

For the first time a Head of State from Africa’s CFA currency region has openly spoken about a very politically and economically sensitive subject that could ruin relationship with colonial master France.

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President Patrice Talon has ordered that his country’s foreign currency reserves colonially deposited in French Central Bank be immediately withdrawn. Such a decision has been a taboo and no other french colony has ever done this.

All CFA zone countries are former colonies of France and have historically deposited their foreign exchange reserves to Banque de France. This has been an unchangeable rule for decades but the Benin leader seems to have a different route he wants to take his country.

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These reserves are an insurance that guarantees the stability of the CFA and therefore the control of inflation.

In early October, French Finance Minister Bruno Le Maire said Paris was open to an “ambitious reform” of the CFA franc and that it was up to the countries that share the currency to decide what they want.

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Countries in the western Africa Economic bloc ECOWAS are introducing a new currency known as eco and will replace other currencies in this part of the continent which unavoidably will affect the colonial era CFA currency.

What will change is that the banks in the West African CFA zone will have to manage all their foreign exchange reserves. A kind of monetary independence that demands a part of the opinion in the region.

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However, international law experts argue that the decision by President Talon may encounter some legal hurdles before his decision is effected.

Martial Ze Belinga an expert says there is a legal framework that sets obligations to raise at least 50% of reserves to the French Treasury. Now, there is a political decision.

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“It will be necessary to negotiate, to enter into discussion to get the African reserves out of the Treasury. So it may take a while, but the process is ongoing,” he said while appearing on a French TV.

French politicians say President Talon’s move to withdraw from Banque du France may also trigger a political blockade.

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“For a long time, 100% of the reserves in the CFA area were kept in the French Treasury.

And even when we went to 65% in the 1970s, African central banks continued to pay almost 100% to the French Treasury. So, anyway, it is an annuity and it is part of the colonial rents undoubtedly.”

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“We must build win-win games now. And old models will not work. They will no longer work between Africans and Europe, between Africans and the rest of the world, but they will not work anymore.”

The post Benin President Has Done What Other Francophone African Countries Are Afraid To Do; Orders For Economic Decolonization From France appeared first on AfricaCelebrities.Com.

ECO, the new currency to be introduced by ECOWAS will not be anything like the CFA Franc.

The president of ECOWAS and Niger, Mahamadou Issoufou, disclosed this in an interview sighted by AfricaCelebrities.com.

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According to the President, the adoption of a unique currency by the 15 member states of ECOWAS will be the end of CFA Franc in 2020. He however remarked that the CFA Franc, which has colonial underpinnings, is still being used by 8 Francophone countries under UEMOA, the Francophone bloc for monetary affairs.

He further added that this monetary reforms in the sub region is aimed at the development of West Africa, job creations, increased investment opportunities among other things.

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Mr. Issoufou concluded by indicating that all the 15 member states of ECOWAS, comprising of the Francophones and Anglophones unanimously agreed to adopt ECO.

Source: AfricaCelebrities.com

The post New ECO Currency To End CFA Franc In Africa- Mahamadou Issoufou appeared first on AfricaCelebrities.Com.