Eight West African countries have agreed to rename their common currency the CFA franc to Eco reported Reuters. The announcement was made by Ivory Coast President Alassane Ouattara during a visit by French President Emmanuel Macron to the country on Saturday. Ivory Coast is the biggest among the users of the CFA franc in West Africa.
“This is a historic day for West Africa,” Ivory Coast’s President Alassane Ouattara said during a news conference. “This decision shows our determination to create an integrated regional market, dynamic and a source of prosperity for us and for future generations.”
Ouattara announced three major changes which included a change of name of the currency. He added that the Eco will remain pegged to the euro but the African countries in the bloc won’t have to keep 50% percent of their reserves in the French Treasury. Furthermore, the currency union’s board will no longer include a French representative. Further details have not been disclosed.
The French president said he welcomed the launch of the new currency, which will replace the CFA franc in West Africa in 2020. He said he hoped the currency reform would lead to a dynamic regional market.
“Yes, it’s the end of certain relics of the past,” said Macron. “Yes it’s progress … I do not want influence through guardianship, I do not want influence through intrusion. That’s not the century that’s being built today.”
Established in 1945, the CFA franc was initially pegged to the French franc and has been linked to the euro for about two decades. It is used in 14 African countries with a combined population of about 150 million and $235 billion of gross domestic product. Ivory Coast, Benin, Burkina Faso, Guinea Bissau, Mali, Niger, Senegal, and Togo are among the countries using the joint currency.
