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The role of the euro in Sub-Saharan Africa and in the CFA franc zone

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  • Martin Hallet

Abstract

The paper analyses different aspects of the role that the euro is currently playing in sub-Saharan Africa (SSA) and in the CFA franc zone of West and Central Africa. As similar contributions on the role of the euro in other global regions, it served as background information for the analysis of the European Commission on the international role of the euro for the assessment of 10 years of European Economic and Monetary Union ("EMU@10"). The paper examines the role of the euro as an international currency in Sub-Saharan Africa, assesses the effects that the CFA franc's peg to the euro had on macroeconomic stability, trade integration and international competitiveness of the CFA franc zone, and finally looks at how the EU's multilateral surveillance framework served as a blueprint for multilateral surveillance in the CFA franc zone.

Suggested Citation

  • Martin Hallet, 2008. "The role of the euro in Sub-Saharan Africa and in the CFA franc zone," European Economy - Economic Papers 2008 - 2015 347, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0347
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    File URL: https://ec.europa.eu/economy_finance/publications/pages/publication13478_en.pdf
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    References listed on IDEAS

    as
    1. Baudouin Lamine, 2006. "Monetary and exchange-rate agreements between the European Community and Third Countries," European Economy - Economic Papers 2008 - 2015 255, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Kamps, Annette, 2006. "The euro as invoicing currency in international trade," Working Paper Series 665, European Central Bank.
    3. Mr. Charalambos G Tsangarides & Mr. Gustavo Ramirez, 2007. "Competitiveness in the CFA Franc Zone," IMF Working Papers 2007/212, International Monetary Fund.
    4. Jeffrey A. Frankel, 2008. "The Estimated Effects of the Euro on Trade: Why Are They Below Historical Effects of Monetary Unions Among Smaller Countries?," NBER Working Papers 14542, National Bureau of Economic Research, Inc.
    5. Yasser Abdih & Charalambos Tsangarides, 2010. "FEER for the CFA franc," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 2009-2029.
    6. Tsangarides, Charalambos G. & Qureshi, Mahvash Saeed, 2008. "Monetary Union Membership in West Africa: A Cluster Analysis," World Development, Elsevier, vol. 36(7), pages 1261-1279, July.
    7. Mr. Etienne B Yehoue, 2007. "The CFA Arrangements: More than Just An Aid Substitute?," IMF Working Papers 2007/019, International Monetary Fund.
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    Cited by:

    1. Inmaculada Martínez-Zarzoso, 2019. "The Euro and the CFA Franc: Evidence of Sectoral Trade Effects," Open Economies Review, Springer, vol. 30(3), pages 483-504, July.
    2. Strong, Christine Olivia, 2021. "Political influence, central bank independence and inflation in Africa: A comparative analysis," European Journal of Political Economy, Elsevier, vol. 69(C).
    3. Issiaka Coulibaly, 2014. "Competitiveness and growth within the CFA franc zone: Does the switch to the Euro matter?," International Economics, CEPII research center, issue 139, pages 1-18.
    4. Coletta Frenzel Baudisch, 2019. "Chinese Capital Flows to African Economies and Real Bilateral Exchange Rates," MAGKS Papers on Economics 201910, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Issiaka Coulibaly, 2013. "Competitiveness and growth within the CFA franc zone: does the switch to the euro matter?," Erudite Working Paper 2013-04, Erudite.
    6. repec:cii:cepiei:2014-q3-139-1 is not listed on IDEAS

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