CFA franc: criticisms are unfounded and subjective (BCEAO)

Abdoulaye Diop, Vice Governor of the BCEAO

The old debate on the CFA franc never ceases to make headlines. On the side of technicians and politicians, the subject is at the center of the debate and opinions, more than ever, are irreconcilable.

After the exit of former Togolese Minister of Foresight and Public Policy Evaluation, Kako Nubukpo, known for his slayer positions, it is the turn of the Vice Governor of the Central Bank of the States of Africa from the West (BCEAO), Abdoulaye Diop get out of his hinges. For him, the CFA franc is subject to subjective attacks that are not based on any scientific basis.

Speaking Monday (January 28th) at the end of his audience with Senegalese President Macky Sall, the official maintained that it is the passion and even the “monetary fanaticism” that drive the detractors of the currency.

“The CFA franc, as we know it, was created in 1962 and has nothing to do with the franc of the colony of Africa,” he told the cameras. And to add that “this currency is managed by Africans on behalf of Africans through a monetary policy of the BCEAO”.

Faced with fiery diatribes, it is up to the institution to thwart these attacks by giving the right answers and guidance, advised the former Senegalese Minister of Economy and Finance.

Role

With technical arguments on the issue, some economists argue that UEMOA economies are not underfunded. And the rate of financing savings out of the FCFA zone is no better than that of the FCFA zone.

According to data from the IMF’s regional economic outlook, in 2015 the funding rate reached 38% and 42% respectively in Senegal and Togo. While for Ghana, it was only 35%.

“Now the report is there, the role that we want to make play currency in African economies is not necessarily his,” said a professor at the Faculty of Economics and Management of the university Sheikh Anta Diop of Dakar.

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