CFA franc


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Related to CFA franc: XOF

CFA franc


n.
a monetary unit used in West Africa.
[abbr. of Communauté financière africaine African Financial Community]
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References in periodicals archive ?
The country uses the CFA franc, which is pegged to the Euro, so transactions can be done in the CFA, Euro or American Dollar.
The economic hold that France still has on its former African colonies is summed up in the currency it created for them in 1945 called the CFA franc.
Question: Could you explain to our readers, what are the principle mechanisms of the CFA Franc Zone?
Unlike a decade ago, when 25%-plus annual devaluation was the norm in many African countries, principal currencies (notably the South Africa rand, the CFA franc, the Nigerian naira, the Algerian dinar and the Kenyan shilling) have shown greater stability in recent years.
Principal African currencies such as those of the 14-member CFA franc zone, the Rand Monetary bloc comprising South Africa, Lesotho, Namibia and Swaziland and the Maghreb currencies of Algeria, Morocco and Tunisia, have all enjoyed a sustained period of exchange rate stability.
A) The CFA franc Zone currently consists of two separate groups of sub-Saharan African countries.
The ekpwele was replaced by the CFA franc as the national currency.
A short historical perspective of the CFA Franc and its link to, first, the French Franc and now the Euro is necessary for a better understanding of the negative consequences the monetary relationship portends for the African countries concerned.
The strategy, which centered on the devaluation of the CFA franc and relied on the pursuit of supporting fiscal and credit policies, led to a resurgence of economic activity.
In the post-colonial era, the only real example of EMU in Africa is the 'Franc Zone' where one currency - the CFA franc (pegged to the Euro) - is the sole legal tender, and where two supranational institutions, the Banque Centrale des Etats de L'Afrique de l'Ouest (BCEAO) and the Banque des Etats de L'Afrique Centrale (BEAC), are responsible for controlling the area's monetary policy (interest rates and money supply).
France planted the roots of the CFA franc zone in 1945.