Creation The CFA franc was created on 26 December 1945, along with the
CFP franc. The reason for their creation was the weakness of the
French franc immediately after
World War II. 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. New currencies were created in the
French colonies to spare them the strong devaluation, thereby making it easier for them to import goods from France (and simultaneously making it harder for them to export goods to France). French officials presented the decision as an act of generosity.
René Pleven, the
French Minister of Finance, was quoted as saying:
Exchange rate The CFA franc was created with a fixed exchange rate versus the
French franc. This exchange rate was changed only twice, in 1948 and in 1994 (besides nominal adaptation to the new French franc in 1960 and the Euro in 1999). Exchange rate: • 26 December 1945 to 16 October 1948 – F.CFA 1 = 1.70 French franc. This 70 centime
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). • 17 October 1948 to 31 December 1959 – F.CFA 1 = 2 French francs (the CFA franc had followed the French franc's devaluation versus the US dollar in January 1948, but on 18 October 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 followed all the successive devaluations of the French franc) • 1 January 1960 to 11 January 1994– F.CFA 1 = NF 0.02 (1 January 1960: the French franc redenominated, with 100 old francs becoming 1 new franc) • 12 January 1994 to 31 December 1998– F.CFA 1 = F 0.01. An overnight 50% devaluation. • 1 January 1999 onwards – F.CFA 100 = €0.152449 or €1 = F.CFA 655.957. (1 January 1999: the
euro replaced FRF at the rate of 6.55957 FRF for 1 euro) The 1960 and 1999 events merely reflect changes of currency in use in France: the actual
relative value of the CFA franc versus the French franc/euro only changed in 1948 and 1994.
Changes in countries using the franc In 1960, the period of global
decolonization began, marking the end of European empires on the African continent. France disappeared from the map, leaving behind the CFA franc, a legacy of colonization, which circulates in almost all former French possessions in Africa. Over time, the number of countries and territories using the CFA franc has changed as some countries began introducing their own separate currencies. A couple of nations in West Africa have also chosen to adopt the CFA franc since its introduction, despite the fact that they had never been French colonies. • 1960:
Guinea leaves and begins issuing
Guinean francs. which changed later to the Euro. • 1976:
Mayotte leaves for
French franc, which changed later to the Euro. • 1984:
Mali rejoins (1 CFA franc = 2
Malian francs).
Currency printed in France The Banque de France is responsible for producing CFA franc notes and coins in its Chamalières factory, which is seen by some critics as a lack of sovereignty for African states.
Currency devaluation The countries of the CFA franc zone are seen as the preserve of the former guardian power, France, which leads to situation that sometimes fuels rumors of a devaluation of the CFA franc. The CFA franc is alleged by critics to be too strong a currency, with common complaints among critics the franc is overvalued by 10–15% distorting prices and dissuading capital investment in the two currency zones. Even if in the short term, the option of a devaluation seems to be excluded.
Symbolism For some African economists, the debate on economic realities should be prioritized over the symbols of the CFA franc.
Right of veto France retains a right of veto over the monetary policies of the states of the CFA Franc Zone of West Africa and Central Africa.
Stability For supporters of the CFA Franc, the economic stability that the CFA Franc provides lies in monetary cooperation. The underdevelopment of the countries in the franc zone is attributed to factors independent of their monetary and exchange rate policies.
Criticism and replacement in West Africa The currency has been criticized for making national monetary policy for the developing countries of French West Africa all but impossible, since the CFA's value is pegged to the euro (whose monetary policy is set by the
European Central Bank). Critics point out that the currency is controlled by the French treasury, and in turn African countries channel more money to France than they receive in aid and have no sovereignty over their monetary policies. In December 2024, in a report adopted by the French Foreign Affairs Committee, it was published that the reform of the CFA franc in 2019 had been incomplete, largely due to the reluctance of African heads of state to complete it. In November 2024, the 'Tournons la Page' network and the Sciences Po Center for International Research (CERI) published a survey on relations between West African and Central African countries from former French possessions. Nearly 95% of West Africans surveyed expressed their desire to leave. The broader
Economic Community of West African States (ECOWAS), which includes the members of UEMOA, plans to introduce its own common currency for its member states by 2027, for which they have also formally adopted the name
Eco.
Debate on ending the Central African CFA On April 25, 2023, the subject of the CFA franc was discussed at the ministerial meeting of the Economic and Monetary Community of Central Africa (CEMAC) and France. The French perceive the guarantee provided to the CFA franc, and the assurance of its convertibility, as a pillar of economic stability for the region. France remains “open” and “available” to CEMAC proposals to reform monetary cooperation in Central Africa, as has happened in West Africa.
Activism against the CFA Franc In May 2025, activists, economists and civil society representatives opposed to the use of the CFA franc will organize conferences and meetings across African capitals. ==Institutions==