Africa's Last Colonial Currency: The CFA Franc Story

by Fanny Pigeaud, Ndongo Samba Sylla, William Mitchell (Foreword)

Colonialism persists in many African countries due to the continuation of imperial monetary policy. This is the little-known account of the CFA Franc and economic imperialism. The CFA Franc was created in 1945, binding fourteen African states and split into two monetary zones. Why did French colonial authorities create it and how does it work? Why was independence not extended to monetary sovereignty for former French colonies? Through an exploration of the genesis of the currency and an examination of how the economic system works, the authors seek to answer these questions and more. As protests against the colonial currency grow, the need for myth-busting on the CFA Franc is vital and this exposé of colonial infrastructure proves that decolonization is unfinished business.

Genres: Africa, History, Nonfiction, Economics, Politics, France, Western Africa

192 pages, Paperback

Published February 20, 2021

Reviews

[Mquzama · Rating 4 out of 5]

Even after a second read, this book is still a masterpiece. I do feel some sentences were lost in translation but overall, such a brilliantly written critique of the operation of the CFA Franc. I would love to read an expanded version of his work exploring alternatives that are available or can be taken by countries in the Franc zone.

[Oliver Kim]

The CFA Franc -- the unified currency of 14 West African countries "managed" and "backed" by France-- is naked colonialism, plain and simple, with the smallest of legal fig-leafs leaving nothing to the imagination. Just to show how continuous this is with colonial policy, the French didn't even bother to change the acronym, from Colonies françaises d'Afrique to Communauté financière d'Afrique and Coopération financière en Afrique centrale.

The basic idea is that the CFA Franc nations fix their currencies to the French currency (first the Franc, now the Euro). France "guarantees" the convertibility of the CFA Franc to their currency; in exchange, half the reserves are kept in the French Treasury.

If you thought, post-2011, that Greece tying its monetary sovereignty to the whims of Germany was bad, imagine forcing a developing region of 162 million to subordinate its monetary policy to the macroeconomic conditions of industrialized Europe. If population trends continue, by 2100 a country of 74 million will control the currency of a region of 800 million. This is absurd, and it is criminal that it is allowed to continue.

This book is technical and a little bit dry, but the harms of this policy are enormous and worth learning about. The economic and political harms of the CFA Franc far outstrip their dubious benefits, and make a mockery out of French complaints about the US Dollar's exorbitant privilege. If development economists are looking for a big-picture intervention to push for, ending French dominance of this currency and allowing independent nations to make their own decisions seems like a logical first step.

[David]

I mean, I'm no expert, but the CFA does seem to be a more or less inexcusable tool of continued French domination. It's a pathetic picture of a former empire clinging to relevance by maintaining a chokehold on a handful of former colonies. It's obvious to the point of pedantic to note that the monetary policies of the EU don't quite fit the needs of the poorest countries in the world. I definitely don't think the CFA is the silver bullet that shoots down West African development, but I can't imagine that it helps.

[Nora Rawn · Rating 4 out of 5]

Dope. As economics books about the Francafrique go, five stars (as general reading, four). I have been activated at long last as an enemy of the IMF, I have been highly sensitized to the dire influence of France in its former colonies and extraction of value from them, I have been debtpilled (finance lots of things!!!!). I’m maybe Marxist now and I don’t even know if this book if Marxist??? Great follow up to Wizard of the Crow which I read earlier this year. 🤯🤯🤯🤑🤑🤑🤬🤬🤬

[Bernard · Rating 3 out of 5]

Very valuable history, though the book repeats itself or meanders often. Also a lack of sufficient analysis between the interplay of military and political conflicts in West Africa and France's ongoing economic colonialism. I also wish there was a more panoramic view in how global economic crises were received in the CFA zone relative to how they were received in France. Nevertheless, the details are fascinating - the text is an invaluable resource for understanding West African political economy.

[Nathaniel · Rating 4 out of 5]

Niger's uranium imports cover 30% of civilian need and 100% of military needs. If Niger in forty years has not earned from its uranium exports more than it has earned from its onion exports it is clear that there is a problem (said by China's ambassador to Niamey in 2010). Without Africa's wealth, France would be a minor power with the same influence as Austria (Horace Campbell). For every dollar lent to Africa, 60 cents flow out the same year in the form of capital. Account freeze in Ivory Coast after presidential election. French military rob/allow banks to be robbed. Tried to pressure other commercial banks into freezing funds. Currency reserves kept by French Treasury, with inflation African countries actually paid France to hold their money for them due to minuscule interest. No budget allotmentin French budget to "convertability of CFA Franc". Free flow of capital helps French multi-nationals and upper class

[Travis Sundwall · Rating 3 out of 5]

Well written, thoroughly researched but highly tendentious.

I was very pleased to find a book about a monetary union other than the Eurozone or United States.
However, I wish the author dedicated more time to covering specific impacts. A few long form case studies would have been a welcome addition.

In toto:
Thosewith an interest in economics, especially monetary policy, will likely find the book to be worth reading.

[Abe · Rating 5 out of 5]

Excellent overview of the CFA and the ways in which it blocks development in West Africa and enforces French and western control and the mechanisms by which this arrangement is maintained against the wishes of the masses and progressive forces in the country. The book, as the prefaces suggests, has a chartalist flavor to it but the criticisms of these arrangements hardly require any deep commitment to MMT style thinking and indeed have been made by non MMT economists

[emilyzorro]

Much ado is made about the concept of neocolonialism but it is rarely explained in such clear and specific terms. An important addition to the growing literature of Modern Monetary Theory.

[Jake La Fronz · Rating 4 out of 5]

It's so important to learn about the CFA Franc.

[Thomas Kingston · Rating 4 out of 5]

Incredibly approachable and eye opening read that exposes the lingering presence of colonial power in Africa. Very readable and not too lengthy it shows how French control over currency has undermined sovereignty, acted as a barrier to prosperity and has been used to create a system where France still exploits its former colonies. With featured events including disastrous devaluations, coups against those who oppose it and more, at times it sounds like a political thriller rather than an ongoing system.