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The CFA Franc Zone; Currency Union and Monetary Standard

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  • James M. Boughton

Abstract

The CFA franc zone comprises a group of countries in central and west Africa whose currencies have been firmly linked to the French franc since 1948. It combines the features of a currency union with those of an exchange rate peg, and an analysis of its effectiveness must examine both dimensions. Viewed from the perspective of a currency union among the African countries, it would appear that the zone would not constitute an optimum currency area. But when France is viewed as an integral part of the system, the benefits—including discipline, credibility, and stability in international competitiveness—become clearer.

Suggested Citation

  • James M. Boughton, 1991. "The CFA Franc Zone; Currency Union and Monetary Standard," IMF Working Papers 91/133, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:91/133
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    2. Rossum, M.T.A. & Tak, C.M., 1994. "The CFA franc zone : reason for participation," Serie Research Memoranda 0040, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    3. Savvides, Andreas, 1998. "Inflation and monetary policy in selected West and Central African countries," World Development, Elsevier, vol. 26(5), pages 809-827, May.
    4. Jayjit Roy, 2014. "On the robustness of the trade-inducing effects of trade agreements and currency unions," Empirical Economics, Springer, vol. 47(1), pages 253-304, August.
    5. Koichi Hamada, 1998. "The Choice of International Monetary Regimes in a Context of Repeated Games," Open Economies Review, Springer, vol. 9(1), pages 417-446, January.
    6. Plamen K Iossifov & Misa Takebe & Zaijin Zhan & Noriaki Kinoshita & Robert C York, 2009. "Improving Surveillance Across the CEMAC Region," IMF Working Papers 09/260, International Monetary Fund.
    7. Rainer Thiele & Manfred Wiebelt, 1993. "National and international policies for tropical rain forest conservation—A quantitative analysis for Cameroon," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(6), pages 501-531, December.
    8. Giorgioni, Gianluigi & Holden, Ken, 2002. "The crisis of the CFA Franc zone: the case of Cote d'Ivoire," Economic Modelling, Elsevier, vol. 19(4), pages 531-564, August.
    9. Medhora, Rohinton, 1995. "The allocation of seigniorage in the Franc Zone: The BEAC and BCEAO regions compared," World Development, Elsevier, vol. 23(10), pages 1781-1793, October.
    10. Uche, Chibuike U., 2001. "The politics of monetary sector cooperation among the Economic Community of West African States members," Policy Research Working Paper Series 2647, The World Bank.

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