Tag: CFA franc
“There has been considerable uncertainty and speculation about the capacity of both the West African Economic and Monetary Union (Waemu) and the Economic and Monetary Community of Central Africa’s (Cemac) to absorb these shocks and to protect the value of their respective regional currency pegs to the euro,” writes economist, George Ott.
The eight member states of the West African Economic and Monetary Union (Waemu) and France have agreed to rename the CFA franc and implement a range of reforms to the long-standing regional currency.
Since the West African Economic and Monetary Union agreed to rename its CFA Franc to the "Eco", Ghana's government has indicated interest to join the West African currency, but without the planned peg to the Euro. Nigeria's government on the other says it is still studying the development. With the currency set to kick off by the end of the year – Tilewa Adebajo, CEO of CFG Advisory joins CNBC Africa to discuss the implications.
West Africa’s monetary union has agreed with France to rename its CFA franc the Eco and cut some of the financial links with Paris that have underpinned the region’s common currency since its creation soon World War Two.