Debate over the France-backed CFA currency used in West and Central Africa has been revived. This follows an announcement by Benin’s President Patrice Talon; that 8 West African countries would be taking additional steps in withdrawing their foreign exchange reserves stashed at the Bank of France.
Citing the CFA Franc model as more of a’ psychological’ than a ‘technical’ issue, President Talon’s remarks sparked a recurrent and often controversial conversation; around the pegging of African money to the French and European currencies in a post-colonial Africa.
So is the French backed CFA Franc a force for stability among Francophone countries or a tool for economic exploitation? And what would be the implications of African countries breaking away from the CFA?