According to Marc Fonbaustier, the French Ambassador to Nigeria, the CFA Franc remains an essential currency in Francophone African nations despite ongoing critiques of its colonial heritage.
In an exclusive conversation with PREMIUM TIMES, Fonbaustier emphasized that the CFA Franc contributes to monetary stability, minimizes inflation, and maintains a steady connection to the Euro, which aids in fostering trade and investment across the Francophone region and with Europe.
He noted that these advantages play a role in the continuing use of the CFA by several Francophone countries, including those in the African Economic and Monetary Union (AES), that are "bullish on colonialism."
Recent attempts by AES members—Niger, Mali, and Burkina Faso—to sever diplomatic and economic relations with France followed military coups in those states, along with their departure from ECOWAS.
Fonbaustier detailed that the stability provided by the CFA is crucial for attracting investors and maintaining balanced macroeconomic trends, saying, "CFA offers exceptional currency exchange rate stability, and this is vital when seeking to draw in investors and manage fiscal resources effectively. A fluctuating currency complicates these objectives."
The CFA Franc is adopted by 14 countries mainly in West and Central Africa, with eight using it in West Africa and six in Central Africa. Established in 1945, this currency was intended to stabilize the economies of French colonies in Africa and promote economic integration during the colonial period.
Despite its origin, the CFA has been under significant scrutiny for perpetuating colonial influence and granting disproportionate economic leverage to France.
Experts argue that since the currency is tied to the French franc and subsequently to the euro, this limits the financial freedom of nations, constraining their ability to react to local economic challenges.
However, Fonbaustier defended the practical utility of the CFA against allegations of continued French control, mentioning reforms enacted from 2018 to 2019 that lessened France’s involvement in regional monetary mechanisms.
He pointed to the December 2019 Abidjan Accord, which eliminated the requirement for the West African Economic and Monetary Union (WAEMU) to secure 50% of its exchange reserves in the French treasury.
Fonbaustier stated that France no longer participates in the governance of the Central Bank of West African States, which oversees the currency for WAEMU member countries. He argued that using the CFA Franc results from the voluntary choices of independent nations, rather than being a colonial imposition.
In his comments, he illustrated historical fluctuations in monetary union participation, citing Mali and Mauritania's shifts between membership and withdrawal. He indicated that the discussions surrounding currency use in West Africa have matured more rapidly compared to similar dialogues in Central Africa.
Concluding, he mentioned, "The responsibility lies with the countries; they must align their perspectives and approaches regarding this issue."
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