The CFA Franc Zone : Currency Union and Monetary Standard

Author/Editor:

James M. Boughton

Publication Date:

December 1, 1991

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 91/133

Subject:

English

Publication Date:

December 1, 1991

ISBN/ISSN:

9781451931990/1018-5941

Stock No:

WPIEA1331991

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

60

Please address any questions about this title to publications@imf.org