Former French colonies move to loosen currency ties

Eight West African countries and former French colonies have announced plans to loosen financial ties to France by replacing the currency known as the CFA franc. 

The decision, announced on Saturday during a visit to the region by French President Emmanuel Macron, would see a new currency called the eco launched. The new currency would still be linked to the euro. 

The CFA franc has been in use since World War Two, with some economists arguing that it has provided a degree of financial stability to the region. Being pegged to the old French franc and later the euro, the currency has helped to keep inflation down in the seven former French colonies which use it, as well as Guinea-Bissau.

Critics, however, have long argued that the currency has allowed France’s influence to persist in her former colonies even after they gained independence. Particularly as it grants easy access to the region’s mineral wealth. For many living in West Africa, the CFA franc is a daily reminder of lingering colonial links to France. 

The decision to scrap the currency affects Benin, Burkina, Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo. Ivory Coast’s President Alassane Outtara described the move as an historic day for West Africa. 

The new currency is set to be rolled out in a few months time. Although it will still be linked to the euro, African nations will no longer be required to keep half their reserves in the French treasury in Paris. 

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