The proposal of eight West African nations to withdraw their currency reserves from the French central bank, has evoked a spate of reactions.
While it has been largely hailed in the African continent, experts fear, the move having implications on the French economy, is fraught with political ramifications.
The move also comes with the decision to replace the CFA franc – the euro-linked currency used in 14 West and Central African countries – with new common West African currency, named eco.
Even though these eight West African countries which include, Benin, Togo, Burkina Faso, Mali, Senegal, Ivory Coast, Niger and Guinea Bissau had gained independence years ago, they continued to vest their foreign exchange reserves with the French central bank. They have now decided to move their reserves to Senegal.
“We all agree on this, unanimously, to end this model,” Benin’s President Patrice Talon told French media last Thursday.
He claimed that Paris has also agreed to release their reserves, which will now be vested with the Senegal-based Central Bank of West African States.
The CFA, which was specially created in 1945 for the French colonies of Africa, is linked to the euro and its convertibility is guaranteed by France.
According to the arrangement, described by analysts as a colonial relic, these African countries, had to deposit half of their foreign currency reserves, in the French central bank.
A Uganda based analyst Fred Muhumuza said the arrangement was linked to colonial ties with France. Muhumuza, who teaches economics at the Makerere University — one of largest and oldest institution of higher learning – said that depositing currency in developed countries was aimed to insulate it from political instabilities back home.
“They [developing countries] also keep their reserves in the central banks of developed countries, to get good returns, “he said. Many countries prefer to keep their reserves with the Federal Reserve System or the central banking system of the U.S., as international trade mostly uses the U.S. dollar as exchange.
“It is also true, that these reserves act as a good resource for developed countries and not for their real owners,” Muhumuza told Anadolu Agency.
HOW THIS MOVE MAY IMPACT AFRICA
It is my humble submission that this move may be the beginning of turbulence in Africa as our slave masters, France, may move to cause problems for the countries involved. NATO which is one of France’s military proxies was the spearhead in the murder of Ghadaffi, I fear that this move may bring about economic assassination and civil unrest which we can expect will be conjured by France and her cohorts.
It is clear that French economy is based on Africa’s resources, yet our children continue to be deported, treated like second class citizens and continue to be scammed at the embassy of France and countries like it, this is just the beginning and I see great things ahead but if we do not stand together, we can expect that there will be a joint effort to destroy the current leadership of these countries or there will be an effort to find a reason to invade or destabilize the countries in question.
We must remember that all African countries and leaders who have attempted this in the past have seen their economies destroyed,
All African countries MUST drop their tribalistic sentiments if we are to survive this move and gain the benefits. Let us all braise ourselves for the impact as we watch matters unfold.
Please comment below, tell me what you think!