The CFA Franc Zone and the EMU
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Summary:
Whether the prospective shift of the peg of the CFA franc to the euro would constitute an exchange rate arrangement with EMU countries would depend critically on the interpretation of the free convertibility of the CFA franc guaranteed by France. Nonetheless, this shift is likely to leave the CFA franc arrangements and operating features of the zone essentially unchanged. The current parity of the CFA franc could be considered in line with fundamentals. The potential economic consequences for the CFA franc countries could be positive over the long term, but there is a risk of a weakening of external competitiveness.
Series:
Working Paper No. 1997/156
Subject:
Banking Currencies Economic integration Exchange rates External debt Foreign exchange Monetary unions Money Real effective exchange rates
English
Publication Date:
November 1, 1997
ISBN/ISSN:
9781451857368/1018-5941
Stock No:
WPIEA1561997
Pages:
42
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