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CFA franc to be replaced by eco, but initial change is largely symbolic


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Issue 407 - 16 Jan 2020
The move by the eight-member Union Economique et Monétaire Ouest Africaine (Uemoa) to end its 55-yearold currency union based on the French-guaranteed CFA franc will have a range of consequences for businesses and political relations. The new eco currency, whose creation was formally announced in Abidjan on 21 December by President Alassane Dramane Ouattara and the visiting French president, Emmanuel Macron, includes some major changes, notably ending control over franc zone institutions by the Banque de France and reducing the guarantee of the French state. But it does not yet represent an economic revolution: the eco’s introduction in the Uemoa will be subject to a steady transition, intended to avoid upsets in a region that has made considerable economic progress in the past decade, but remains prone to security concerns and potentially volatile populations.

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