# CFA franc

> two common currencies of 14 African countries

**Wikidata**: [Q191511](https://www.wikidata.org/wiki/Q191511)  
**Wikipedia**: [English](https://en.wikipedia.org/wiki/CFA_franc)  
**Source**: https://4ort.xyz/entity/cfa-franc

## Summary
The CFA franc is a shared currency system used by 14 African countries, divided into two distinct currencies: the Central African CFA franc and the West African CFA franc. Both are pegged to the euro and managed under the French Treasury’s oversight. It was introduced in 1945 as part of the French colonial monetary policy and remains in use today.

## Key Facts
- The CFA franc refers to two separate currencies: the Central African CFA franc and the West African CFA franc.
- The Central African CFA franc is used in six countries: Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon.
- The West African CFA franc is used in eight countries: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
- The currency was originally established in December 1945.
- The CFA franc replaced earlier colonial-era currencies such as those tied to the French West African colonies and French Equatorial Africa.
- The Central African CFA franc is linked to the West African CFA franc through a common history and fixed exchange rate with the euro.
- The CFA franc is not directly related to the Réunion franc, which is the currency of Réunion, though both are influenced by French monetary systems.
- Historical entities like the Sudanese Republic (former name of Mali from 1958–1959), Sahel-Benin Union, Republic of Upper Volta (1958–1984), People's Republic of the Congo (1969–1991), Republic of Dahomey, Mali Federation, and French Cameroons are all connected to the historical context of the CFA franc region.

## FAQs
### What is the CFA franc?
The CFA franc is a dual currency system used by 14 African countries, split between the Central African CFA franc and the West African CFA franc. Both currencies are pegged to the euro and were created in 1945 as part of the post-colonial monetary framework in former French African colonies.

### Which countries use the CFA franc?
The Central African CFA franc is used in Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon. The West African CFA franc is used in Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

### When was the CFA franc established?
The CFA franc was established in December 1945, shortly after the end of World War II, as part of France's monetary reorganization of its African colonies.

### How is the CFA franc related to the euro?
Both the Central and West African CFA francs are pegged to the euro at fixed exchange rates. This linkage ensures monetary stability but also ties the economies of these countries closely to the European financial system.

### What historical entities are associated with the CFA franc?
Historical entities such as the Sudanese Republic (1958–1959), Sahel-Benin Union (established 1958), Republic of Upper Volta (1958–1984), People's Republic of the Congo (1969–1991), Republic of Dahomey, Mali Federation (1959–1960), and French Cameroons (post-1919) reflect the colonial and post-colonial transitions that led to the adoption of the CFA franc.

### Is the CFA franc still in use today?
Yes, both the Central African CFA franc and the West African CFA franc remain in active use in their respective regions, continuing to function under the oversight of the French Treasury.

### What is the Réunion franc?
The Réunion franc is the currency of Réunion, a French overseas department. While it shares a historical link with the CFA franc due to its connection to French monetary policy, it is not part of the CFA franc system.

## Why It Matters
The CFA franc plays a central role in the economic structures of 14 African nations, providing a stable currency pegged to the euro. It reflects a legacy of colonial monetary policy and continues to influence trade, investment, and economic sovereignty in the region. Its fixed exchange rate with the euro offers predictability in international transactions but also raises questions about economic independence. The currency system has enabled financial stability in many of the participating countries, though it remains a subject of debate regarding its ties to France and its impact on domestic economic policy.

## Notable For
- Being one of the few currency systems in the world still tied to a former colonial power.
- Having two distinct but historically linked currencies: the Central African CFA franc and the West African CFA franc.
- Maintaining a fixed exchange rate with the euro since its inception in 1945.
- Serving as the official currency for 14 African countries, making it one of the most geographically widespread currency zones in Africa.
- Reflecting the complex legacy of French colonial monetary policy in post-independence Africa.

## Body

### History
The CFA franc was introduced in December 1945 as part of France’s post-World War II monetary reorganization of its African colonies. It was initially created to stabilize the economies of French West Africa and French Equatorial Africa. The currency was pegged to the French franc and later to the euro at a fixed rate, ensuring monetary stability but also maintaining a strong link to French economic policy.

The system evolved through various political transitions in the participating countries. For instance, the Republic of Upper Volta (modern-day Burkina Faso) used the CFA franc from 1958 to 1984, and the People's Republic of the Congo adopted it from 1969 to 1991. The currency also reflects the legacy of entities like the Sudanese Republic (1958–1959), the Sahel-Benin Union (1958), and the Mali Federation (1959), all of which were transitional states that used or influenced the adoption of the CFA franc.

### Structure and Variants
The CFA franc is divided into two distinct currencies:
- **Central African CFA franc (XAF)**: Used in six countries — Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon.
- **West African CFA franc (XOF)**: Used in eight countries — Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

Both currencies are managed by separate regional banks but share a fixed exchange rate with the euro and are backed by the French Treasury.

### Relationship to Other Currencies and Systems
The CFA franc is not directly related to the Réunion franc, which is the currency of Réunion, a French overseas department. However, both currencies reflect France’s broader monetary influence. The CFA franc is also historically connected to several defunct states such as the Sudanese Republic, Sahel-Benin Union, Republic of Upper Volta, People's Republic of the Congo, Republic of Dahomey, and the Mali Federation, all of which were transitional or former states that used or influenced the adoption of the CFA franc.

### Economic Significance
The CFA franc provides monetary stability to its member countries by maintaining a fixed exchange rate with the euro. This has helped in controlling inflation and facilitating trade with Europe. However, critics argue that this system limits economic sovereignty and ties the economies of these nations too closely to France.

### Geopolitical Context
The CFA franc remains a symbol of the enduring influence of French economic policy in Africa. While it has provided stability, it also raises questions about post-colonial economic dependence. The currency continues to be a subject of debate among economists, policymakers, and citizens in the participating countries.

### Related Entities
- **Sudanese Republic**: Former name of Mali (1958–1959), used the CFA franc during its brief existence.
- **Sahel-Benin Union**: A union of former French colonies that influenced the regional adoption of the CFA franc.
- **Republic of Upper Volta**: Now Burkina Faso, used the CFA franc from 1958 to 1984.
- **People's Republic of the Congo**: Used the CFA franc from 1969 to 1991.
- **Republic of Dahomey**: Now Benin, used the CFA franc from 1958 to 1975.
- **Mali Federation**: A short-lived federation of Senegal and Mali that used the CFA franc.
- **French Cameroons**: A former French Mandate territory that transitioned to using the CFA franc post-1919.

These entities reflect the complex historical and political transitions that shaped the adoption and use of the CFA franc in various regions of Africa.

## References

1. Freebase Data Dumps. 2013
2. National Library of Israel
3. KBpedia