French president Emmanuel Macron is this week expected to signal a possible rethink on the French-backed CFA franc used by west and central African states but that critics see as a colonial relic, reports the Financial Times.
Alassane Ouattara, president of Ivory Coast, the region’s biggest economy, has been a strong defender of the euro-pegged currency, but has come under pressure from regional politicians and activists to challenge the arrangement.
Mr Macron is due to meet Mr Ouattara in Abidjan this week and is expected to discuss the concerns. Established in 1945, the CFA franc is used in two African monetary zones, one for eight west African countries and the other for six mostly petro-states in central Africa.
Since 1999, it has been pegged to the euro, giving the member states monetary stability while supporting trade with Europe. In return, the members have to keep half of their foreign reserves in France, on which the French treasury pays 0.75 per cent interest.
A French official sits on the board of the regional central bank in both zones, and the currency is printed by France.