West African countries that have been under direct patronage of colonial master, France, are finally free nations, Taarifa reports.
Ivorian President, Alassane Ouattara, announced on Saturday the end of the CFA currency in West Africa, which will be replaced by the ECO.
A new monetary agreement has been signed in Abidjan and the ECO will be pegged to the Euro.
The eight countries of the current franc zone in West Africa will cut technical ties with the Treasury and the Banque de France.
They will manage the currency themselves without Paris’ interference, but France will continue to offer guarantees in the event of a monetary crisis.
“You could say that West Africa is gaining political independence, bringing heart to domestic investors and preserving a close bond with foreign investors,” said a monetary analyst appearing on Radio France International.
This is a first step, which, according to this analyst, is important, because at first, “we must hurry gently, and secondly, today we must not take down West Africa from Central Africa.”
“This is a step in the right direction because it clarifies the debate. The French are no longer in the governing bodies. We choose a fixed parity pegged to the Euro, and specifically ask France to guarantee this parity “, explains Abdourahmane Sarr, Senegalese economist, President of the Center for Financing Local Economic Development (Cefdel).
For him, the end of the CFA is first of all a means of overcoming the debate around the single currency pegged to the Euro.
“The discussion now will change. It will be: is this stowage and this guaranteeing something good or not for the economy? At that point, the economists will be able to debate without the debate being polluted by questions which in the bottom are not very important”, he analyzes.
The Senegalese economist says that the end of the CFA will not change anything on a daily basis “except that the perception of interference by representatives of France in governance bodies will no longer be there. But basically nothing has changed.”