The Central Bank of West African States (BCEAO) denies that the CFA franc has been devalued against the euro.
In a press release, the issuing institute common to the member states of the West African Monetary Union (UMOA) declares that it “learned of an article posted on social networks announcing a devaluation of the CFA franc against the ‘euro which would have occurred on March 9, 2022’.
”The BCEAO formally denies this information and specifies that the exchange rate between the euro and the CFA franc remains unchanged, namely 1 euro = 655.957 CFA francs”, underlines the text.
It points out that ”the official exchange rates of the main currencies are published daily on its website which can be consulted at www.bceao.int in the section ‘Statistics – Currency rates against CFA franc’”.
The BCEAO ”consequently invites the populations to be extremely vigilant and to refer only to the usual official communication channels of the issuing institution”.
It says it reserves ”the right to take legal action against the perpetrators and accomplices of acts and messages likely to undermine the monetary signs that are legal tender in WAMU member states”.
The CFA franc is the denomination of the common currency of 14 African countries. Eight of them, Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo, constitute the West African Economic and Monetary Union (UEMOA).
The CFA franc is also used by Cameroon, the Central African Republic, Congo, Gabon, Equatorial Guinea and Chad, which constitute the Economic and Monetary Community of Central Africa (CEMAC), whose issuing institution is the Bank of Central African States (BEAC).
Since January 1, 1999, the parity of the CFA franc has been 655.957 CFA francs for one euro.
On January 11, 1994, the CFA franc was devalued by half. From one French franc for 50 CFA francs, its value then rose to 1 French franc for 100 CFA francs.
This devaluation had resulted in a significant drop in purchasing power in the countries using this currency, particularly in urban centers oriented towards imported products. But it had also encouraged a revival of local production.