In a joint press conference with President Macron of France, President Ouattara of Ivory Coast has announced that 8 African Countries will no longer use the CFA currency.
It will be replaced by the ECO.
No longer will 50% of the reserves be held by French treasury.
Currency will still be pegged against the Euro it seems, more details still coming in.
This could mean that France’s representatives at Central Bank of West African States/ Banque Centrale des États de l’Afrique de l’Ouest, are to leave.
ElombahNews gathered that the CFA used in Central African Countries is not affected by this move.
Asked how this development affects France, a top Ecowas official told ElombahNews: “My hunch is that France will not willingly give up the estimated US$500 billion it makes annually from warehousing the CFA for its former colonies. So, if at all this will work there will a deliberate delay by Paris to test the waters. Secondly, beyond declations, getting the structure right for a monetary union by ECOWAS member states is not going to be easy. Fingers crossed my brother!”
The announcement is in line with the decision by ECOWAS heads of state at their last summit in Abuja on the regional monetary union agenda held on 21st December 2019.