(Agence Ecofin) – According to the BCEAO, the FCFA depreciated by 4.7% against all other West African currencies in August 2022, on an annual basis. But of all these currencies, it is the Guinean franc which garnered the most value against the currency of the WAEMU countries over the period studied.
The FCFA depreciated by 24% against the Guinean franc in August 2022, compared to the same period in 2021. This is what emerges from the monthly note on the economic situation of the countries of the Western Economic and Monetary Union. Africa (UEMOA), published by the BCEAO.
This drop is the largest recorded by the WAEMU currency against other West African currencies over the period studied. It is also part of a more global fall in the value of the WAEMU currency against other West African currencies.
Thus, the report indicates that over the period from August 2021 to August 2022, the FCFA depreciated by 4.7% against all the currencies of other West African countries. Although it appreciated 18.4% and 16.7%, respectively against the cedi and the leone, it lost 23.0% of its value against the Liberian dollar, 11.8% against the naira and 7.1% against the Dalasi.
Need we remind you, the CFA franc has been facing turbulence for several months due in particular to the fall in value of the euro to which it is pegged via the principle of fixed parity, against the dollar. As of October 18, 2022, one euro was worth $0.98 against $1.15 in October 2021 while the FCFA was trading at 665.6 FCFA for $1 against 564.7 FCFA for $1, over the same period.
Despite these declines, the currency common to WAEMU countries recorded encouraging performances in August compared to the previous month. ” In the West African sub-region, the CFA franc recorded, during the month of August 2022, an increase of 2.7% compared to its value at the end of the previous month. “, specifies the BCEAO. ” The CFA franc appreciated against the cedi (+8.2%), the leone (+3.4%) and the naira (+0.6%). On the other hand, the currency of the WAEMU countries depreciated against the Gambian dalasi (-1.3%), the Guinean franc (-0.9%) and the Liberian dollar (-0.2%) “, adds the report.
Moutiou Adjibi Nourou