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CFA Franc countries can't leave because 1) France holds their foreign reserves so France holds the upper hand, 2) France actively works against countries trying

CFA Franc countries can't leave because 1) France holds their foreign reserves so France holds the upper hand, 2) France actively works against countries trying to leave.

barry-cotter 7y ago
Countries have left the CFA Franc so it’s obviously possible. If France had held onto their foreign reserves I imagine that would have been mentioned somewhere so I doubt it’s true.
- seszett 7y ago
  Half of the reserves of each CFA franc country have to be deposited to the French treasury - which is responsible for ensuring that euros can be exchanged for CFA franc, so obviously it has to hold a significant amount of CFA. They can be withdrawn whenever the country leaves the CFA franc. But in the recent past, countries have been more eager to join than to leave.
  - dmix 7y ago
    > But in the recent past, countries have been more eager to join than to leave. Hmm. That’s a strange form of colonialism
    - kiliantics 7y ago
      just because a few rich/powerful people at the top of the country benefit from it and therefore actively embrace it, doesn't mean it's not colonialism
Xixi 7y ago
Nonsense: many countries have left the CFA Franc (like Guinea, Madagascar and Mauritania), and others have joined (like Equatorial Guinea or Guinea-Bissau). Some have left and joined again (like Mali). I wonder if you have actual example of France actively working against countries trying to leave? Or even a pointer to countries trying to leave? I'm not competent to judge whether the CFA Franc is a good currency or not for the countries using it. No doubt it is a compromise with good sides and bad sides. The obvious good side being that it certainly makes trade easier within the CFA Franc zone. The obvious bad side is that the Euro top priority being fighting inflation, it can hinder exportations from countries that are not very competitive. A complaint often heard about the Euro from European countries (especially France, sweet irony). Hopefully African nations will manage to create their very own currency, and will manage it well.

CFA Franc countries can't leave because 1) France holds their foreign reserves so France holds the upper hand, 2) France actively works against countries trying to leave.

barry-cotter 7y ago

Countries have left the CFA Franc so it’s obviously possible. If France had held onto their foreign reserves I imagine that would have been mentioned somewhere so I doubt it’s true.

seszett 7y ago
Half of the reserves of each CFA franc country have to be deposited to the French treasury - which is responsible for ensuring that euros can be exchanged for CFA franc, so obviously it has to hold a significant amount of CFA. They can be withdrawn whenever the country leaves the CFA franc. But in the recent past, countries have been more eager to join than to leave.
- dmix 7y ago
  > But in the recent past, countries have been more eager to join than to leave. Hmm. That’s a strange form of colonialism
  - kiliantics 7y ago
    just because a few rich/powerful people at the top of the country benefit from it and therefore actively embrace it, doesn't mean it's not colonialism

Xixi 7y ago

Nonsense: many countries have left the CFA Franc (like Guinea, Madagascar and Mauritania), and others have joined (like Equatorial Guinea or Guinea-Bissau). Some have left and joined again (like Mali). I wonder if you have actual example of France actively working against countries trying to leave? Or even a pointer to countries trying to leave? I'm not competent to judge whether the CFA Franc is a good currency or not for the countries using it. No doubt it is a compromise with good sides and bad sides. The obvious good side being that it certainly makes trade easier within the CFA Franc zone. The obvious bad side is that the Euro top priority being fighting inflation, it can hinder exportations from countries that are not very competitive. A complaint often heard about the Euro from European countries (especially France, sweet irony). Hopefully African nations will manage to create their very own currency, and will manage it well.