The 1992-93 EMS Crisis and the South: Lessons from the Franc Zone System and the 1994 CFA Franc Devaluation

The January 11, 1994, CFA franc devaluation stands as the most significant macroeconomic reform in nearly a century of the Franc Zone system, particularly following the political independences of former African French colonies in the 1960s. Whilst conventional narratives attribute it to fiscal excesses in major economies like Côte d’Ivoire and Cameroon, newly uncovered archival data from the Banque de France, the Bank of England, the Bundesbank (the latter two sourced from Eichengreen and Naef, 2022), and the IMF challenge this view. Instead, I reinstate the devaluation within a much broader common African-European experience: the 1992–93 European Monetary System (EMS) crisis. Evidence unveils its critical role in shoring up the French franc’s credibility amidst the crisis and suggests a new ‘democratic Franc Zone’s Transition Committee’ within the Banque de France/Eurosystem for future governance.