PULSE
At least 14 countries are still sending money to France because they still use their colonial currency.
The West African CFA Franc created in 1945 is used by eight West African countries: Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo.
Six Central African countries use the Central African CFA Franc: Cameroon, Central African Republic, Chad, Equatorial Guinea, Gabon, and the Republic of Congo. The Comorian Franc is used only by the Comoros.
Interestingly, all these countries were colonised by France except Guinea-Bissau and Equatorial Guinea who were colonised by the Portuguese and Spain respectively.
All these three currencies are backed by France, meaning they are pegged to the euro and can be freely exchanged.
France manages the issuance and printing of these currencies. In exchange, countries using the CFA Franc must deposit at least 50% of their reserves at the French Public Treasury.
The CFA Franc’s peg to the French Franc, and now the euro, has hindered the region’s economic development.
All these three currencies are backed by France, meaning they are pegged to the euro and can be freely exchanged.
France manages the issuance and printing of these currencies. In exchange, countries using the CFA Franc must deposit at least 50% of their reserves at the French Public Treasury.
The CFA Franc’s peg to the French Franc, and now the euro, has hindered the region’s economic development.
THIS STORY FIRST APPEARED IN PULSE
