A bill ratifying the end of the CFA franc was adopted this Wednesday, May 20 in the Council of Ministers by the French government.
This bill formally validates the transformation of the West African currency to Eco.
This is a new step after the announcement made on December 21 by Emmanuel Macron and Alassane Ouattara, in Abidjan.
This reform concerns eight member countries of the West African Monetary Union (UEMOA): Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
A few highlights:
- The name of the West African CFA franc (XOF) will now be Eco without affecting its fixed exchange rate tied to the Euro.
- An end to technical ties between UEMOA, the treasury in France and Bank of France. This means France will no longer co-manage the Eco.
- Central Bank of West Africa (BCEAO) will no longer deposit half of its Foreign reserves in France. France will no longer be a member of BCEAO decision making and management bodies.