Political sketch
Formerly part of French Equatorial Africa. Independent from France on 11 August 1960.
French exploration of Chad began in 1891. The French ousted the previous ruler, a Sudanese who had taken over starting 1883. In 1910 Chad was made part of the federation of French Equatorial Africa, and it became a French overseas territory in 1946. During the Second World War, French Equatorial Africa and Cameroon made the decision on 26-28 August 1940 to side with the Free French government in exile. On 28 November 1958 Chad became an autonomous republic within the French Community.
Chad became independent on 11 August 1960 in the great wave of French African colonies that year. Chad's stability was soon endangered by tensions between the black, predominantly Christian south and the nonblack, Muslim north. In the mid 1960s two guerrilla movements sought to overthrow the government, reduce French influence, and promote ties to Libya. A coup occurred in 1975. In 1977 Libya annexed the so-called Aouzou strip of territory in northern Chad and in 1979 it began an offensive into Chad. With French help, Chad repulsed the offensive, and Libyan forces withdrew in 1981. Other coups occurred in June 1982 and in December 1990, when a government friendly to Libya took power. Idriss Déby has been the actual or official head of state from the 1990 coup to the present (2005). Multi-party elections occurred in June 1996; they were marked by irregularities, as was a presidential election in May 2001. Oil was discovered in 1974, determined to be present in large amounts in 1994, and exported starting in 2003. Older major exports of the heavily agricultural economy are cotton and cattle. The name of the capital, formerly Fort-Lamy, was changed to N'Djamena in 1973.
Wars since 1500
French Conquest of Chad, 1897-1914; Chadian Civil War of 1965-1996 (Libya supported Chadian guerillas and tried to seize land for itself).
Convertibility
The French franc zone:
When the First World War began, France imposed a moratorium of payments on all negotiable instruments starting 1 August 1914. The moratorium was subsequently extended by decrees until 1 March 1915. The central bank, the Bank of France, abandoned the gold standard on 5 August 1914, although no official prohibition on exporting gold existed until by a decree of 3 July 1915, affirmed by a law of 15 November 1915. A decree of 2 April 1918 prohibited capital exports without authorization. A law of 25 June 1928 officially restored the gold standard and repealed exchange controls. When the French franc was an object of currency speculation , a law of 13 August 1936 imposed extensive exchange controls, supplementing some lesser measures that had been implemented in 1935.
France imposed exchange controls on 9 September 1939 by a decree of that date, soon after the Second World War broke out. On 20 May 1940, capital controls within the franc zone were greatly relaxed by a French decree of that date. French Equatorial Africa broke from the French government of Vichy, which was something between neutral and allied with Germany, and sided with the London-based Free French government in August 1940. Exchanges with France were cut off to about September 1944, by which time the Allies had liberated Paris and the main French port cities. Exchange controls within the franc zone were not removed until 6 June 1946. Afterwards, the CFA franc became convertible both for current- and capital-account transactions within the French franc zone (France, Monaco, And French possessions, including countries using the CFA franc). Outside the French franc zone it became convertible for current-account transactions when France resumed current-account convertibility, but it was not convertible for capital-account transactions. France had multiple exchange rates from 26 January 1948 until 17 October 1948, and a dual exchange rate from 18 October 1948 to 29 September 1949. On 20 September 1949 it devalued the French franc and unified the exchange rate, taking advantage of the lead offered by the United Kingdom, which had devalued the pound sterling on 18 September 1949.
The CFA franc zone:
All independent countries belonging to the CFA franc zone except Mali issued laws or decrees stating that effective 1 July 1967, financial relations with foreign countries were in principle free. Madagascar (then called the Malagasy Republic) issued similar legislation on the same date; Mali waited until 29 March 1968. The CFA franc zone countries were following earlier French legislation (France, Law No. 66-1007, 28 December 1966; Decree No. 67-78, 27 January 1967, effective 31 January 1967). France reintroduced exchange controls on 29 May 1968, during a period of strikes and riots (France, Decree No. 68-481, 29 May 1968). It removed controls on 4 September 1968 (France, Decree No. 68-788, 4 September 1968) but reimposed them on 25 November 1968 (France, Decree No. 68-1021, 24 November 1968) before revoking them on 1 January 1969. The CFA franc zone countries, including Madagascar, all strengthened their exchange controls against countries outside the French franc zone in 1968, following France, and loosened them in January 1969. France introduced a dual exchange rate on 21 August 1971 for itself and its French franc zone territories, which excluded Djibouti (France, Ministry of Economy and Finance, Circulaire du 20 août 1971 relative à l'exécution des transferts à destination de l'étranger, 20 August 1971). The CFA franc zone countries, including Madagascar, followed suit on these dates in 1968: Cameroon and Congo-Brazzaville, 28 August; Burkina Faso (then called Upper Volta) and Côte d'Ivoire (Ivory Coast), 30 August; Gabon and Senegal, 31 August; Mauritania, 1 September; Chad, 3 September; Madagascar and Niger, 4 September; Togo, 7 September; Central African Republic, sometime in September; Benin (then called Dahomey) and Mali, 9 September. All except Madagascar and Mauritania abolished the dual market on 21 March 1974, the same day as France (France, Ministry of Economy and Finance, Circulaire du 20 mars 1974 relative à l'exécution des transferts entre la France et l'étranger sur le marché officiel des changes, 20 March 1974). Madagascar had withdrawn from the French franc zone effective 1 July 1973, and its dual market had ended on that date. Mauritania had introduced a new national currency on 29 June 1973 to replace the CFA franc, and its dual market had ended on that date. The dual exchange rate did not apply to transactions within the French franc zone, so purchases and sales of French francs for CFA francs continued to be made at a single rate, the official rate, which was a pegged rate. Certain purchases and sales of currencies outside the French franc zone had to be made at the so-called financial rate, which was a floating rate.
Reinhart and Rogoff (2002) note a premium in low single digits in the dual market from 9 September 1971-20 March 1974 (by my non-overlapping system of dates; 21 March 1974 by their overlapping system). The premium existed because France established a dual rate, and so as not to create loopholes in the French franc zone, the CFA franc countries established dual exchange rates in imitation of France. In light of the problems the CFA franc had for a decade or more before its devaluation of 12 January 1994, it is surprising that their data show low or often no parallel market premium.
The CFA franc zone central banks suspended convertibility of their currencies into the French franc from 2 August 1993-11 January 1994, resuming on 12 January 1994. When the French franc ended its existence as a separate currency on 1 January 1999, the CFA franc became convertible both for current- and capital-account transactions within the former French franc zone (France and its territories, Monaco, and countries using the CFA franc, including the Comoros), but remained convertible only for current-account transactions with other currencies.
Other
The French government established the CFA franc on 26 December 1945. The CFA franc became the unit of account in French colonies in sub-Saharan Africa and the Americas that had previously used a local franc equal to the French franc. Local francs in North Africa (Algeria, Tunisia, and Morocco) and Djibouti remained in effect fully attached to the French franc. French colonies in the Pacific established a unit of account called the CFP franc, while Indochina, Syria and Lebanon, and Pondicherry (India) already had currencies that were not called francs. The CFA franc enabled the French government to make exchange rate policy in the colonies different from that in France. When making devaluations of the French franc against gold and the US dollar on 26 December 1945 and 17 October 1948, the French government devalued the CFA franc less, implying a revaluation against the French franc. The meaning of "CFA" was initially Colonies Françaises d'Afrique (colonies of France in Africa). In Africa, the meaning changed when the colonies established central banks in preparation for political independence. CFA came to mean Communauté Financière Africaine (African financial community) for the member countries of the Banque Centrale des États de l'Afrique de l'Ouest (BCEAO, opened 4 April 1959). It came to mean Coopération Financière en Afrique Centrale (financial cooperation in Central Africa) for the member countries of the Banque Centrale des États de l'Afrique Équatoriale et du Cameroun (BCEAC, also opened 4 April 1959), which since 22 November 1972 has been called the Banque des États de l'Afrique Centrale (BEAC).
Defaults on or restructurings of debt to the private sector (mainly from Purcell and Kaufman 1993 and Standard & Poor's 2004): None.
Reinhart and Tokatlidis (2000: 33) dating of recent financial liberalization: Domestic (notably interest rates) 1990, external (notably foreign-exchange market and participation by foreign financial institutions) 1996.
Banking crises (data since 1970s mainly from Caprio and Klingebiel 1999 and Frydl 1999): 1979-1983; in 1992 private sector nonperforming loan ratio was 35%.
Frankel and Rose (1996) list of currency crashes: 1981.
References
Primary sources:
--Laws and decrees:
CEMAC. Gazette. 1999-present. Communauté Économique et Monétaire de l'Afrique Centrale (or en Afrique Centrale). Bulletin officiel. Bangui: Communauté Économique et Monétaire de l'Afrique Centrale. (Successor to UDEAC gazette.)
Chad. Gazette. 1959-present. Journal officiel de la République du Tchad. Brazzaville: Journal Officiel (1959-?); Fort-Lamy/N'Djamena (name changed 1973): Imprimerie Nationale du Tchad (?-present).
France. Gazette. 1762-present. Gazette de France (1762-1789); Gazette nationale de France (1789-1799); Bulletin des lois (1791-1831; a separate publication); La gazette nationale ou le moniteur universel (1799-1810); Moniteur universel (1811-1848); Moniteur universel: journal officiel de la République française (1848-1852); Journal officiel de l'Empire français (1852-1870); Journal officiel de la République française (1871-1941); Journal officiel de l'État français (Vichy France, 1941-1944); Bulletin officiel des Forces françaises libres (Free France, 1940-1941); Journal officiel de la France libre (Free France, 1941); Journal officiel de la France combattante (Free France, 1941-1943); Journal officiel du Haut commissariat de France en Afrique (Free France, 1943); Journal officiel du Commandement en chef français en Afrique (Free France, 1943); Journal officiel de la République française (Free France, 1943-1944; France, 1944-present). Paris (1762-1940, 1944-present); Vichy (1940-1944); London (Free France, 1941-1943); Algiers (Free France, 1943-1944): Imprimerie des Journaux Officiels (1944?-present). Many issues are in France, Legifrance Web site (see below).
France. Legifrance Web site, <http://www.legifrance.gouv.fr>. Reference site for French treaties, laws, and decrees, including the full text for recent items.
France. Overseas gazette. 1887-1961. Bulletin officiel (1887-1953; new series, 1953-1959); Bulletin officiel de l'administration provisoire des services du Ministère de la France d'Outre-Mer (1959-1961). Issued by Ministère des Colonies (1887-1950); Ministère de la France d'Outre-Mer (1950-1961). Paris: Imprimerie Nationale.
French Equatorial Africa. Gazette. 1904-1959. Journal officiel de l'Afrique équatoriale française (1904-1940); Journal officiel de l'Afrique française libre (1940-1942); Journal officiel de l'Afrique équatoriale française (1943-1959). Brazzaville: Imprimerie Officielle.
Ubangi-Shari-Chad. Gazette. 1907-1958? Journal officiel de l'Oubangui-Chari-Tchad. Bangui: Imprimerie du Gouvernment.
UDEAC. Gazette. 1966-1999. Union Douanière et Économique de l'Afrique Centrale. Journal officiel de l'Union douanière et économique de l'Afrique centrale. Douala: Union Douanière et Économique de l'Afrique Centrale. (Succeeded by CEMAC gazette.)
--Publications of monetary authorities:
BCEAC. Banque Centrale des États de l'Afrique Équatoriale et du Cameroun. Annual report. 1959-1972 (annual). Rapport d'activité. Paris: Banque Centrale des États de l'Afrique Équatoriale et du Cameroun.
BCEAC. Banque Centrale des États de l'Afrique Équatoriale et du Cameroun. Bulletin. 1959-1973 (monthly). Bulletin mensuel (1959-1960); Études et statistiques: bulletin mensual (1961-1973). Paris: Banque Centrale des États de l'Afrique Équatoriale et du Cameroun.
Banque de l'Afrique Occidentale. Annual report. 1901/1902-1964/1965. Assemblée générale ... procès-verbal et rapport du conseil d'administration. Paris: Banque de l'Afrique Occidentale.
BEAC. Banque des États de l'Afrique Centrale. Annual report. 1973-present. Rapport d'activité. Paris (1973-1976); Yaoundé (1977-present): Banque des États de l'Afrique Centrale.
BEAC. Banque des États de l'Afrique Centrale. Bulletin. 1973-present. Études et statistiques: bulletin mensuel (1973-1979); Études et statistiques (1980-present). Paris (1973-1977); Yaoundé (1977-present): Banque des États de l'Afrique Centrale.
CCFOM. Caisse Centrale de la France d'Outre-Mer. Annual report/annual report on French Equatorial Africa. 1947-1949. L'évolution monétaire des Territoires d'Outre-mer et le financement de leur plan d'équipement: (exercice 1947/1948 et exercice en cours) (1947/1948); Situation économique de l'A. E. F.: rapport annuel (1949). Paris: Caisse Centrale de la France d'Outre-Mer.
IEAEFC. Institut d'Émission de l'Afrique Équatoriale Française et du Cameroun. Annual report. 1955/1956-1958. Rapport d'activité. Paris: Institut d'Émission de l'Afrique Équatoriale Française et du Cameroun.
IEAEFC. Institut d'Émission de l'Afrique Équatoriale Française et du Cameroun. Bulletin. 1956-1959. Bulletin mensuel. Paris: Institut d'Émission de l'Afrique Équatoriale Française et du Cameroun.
--Web site of the current monetary authority (viewed 20 September 2005):
<http://www.beac.int>
--Other publications or Web sites:
Comité Monétaire de la Zone Franc. Secrétariat. 1953-present. Premier [etc.] rapport annuel du Comité de la zone franc établi en exécution du décret du 5 fevrier 1952 (art. 4, §2) (1953-1956); La zone franc en 1957: cinquième rapport annuel du Comité Monétaire de la Zone Franc (1957); La zone franc en ...: rapport publié par le Secrétariat du Comité Monétaire de la Zone Franc (1958-1983); La zone franc: rapport ...: publié par le Secrétariat du Comité Monétaire de la Zone Franc (1984-1991); La zone franc: rappport annuel ...; publié par le Secrétariat du Comité Monétaire de la Zone Franc (1992-2003; inside page says La zone franc en ...); Rapport annuel de la zone franc (2004-present; inside cover says La zone franc: rapport annuel ...). Paris: Imprimerie Nationale (1953-1956); Secrétariat du Comité Monétaire de la Zone Franc (1957-1991; 1957 is a mimeo with no explicit publication information); Banque de France (1992-present). Recent issues are available on the Web site of the Banque de France, <http://www.banque-france.fr/fr/eurosys/zonefr/zonefr.htm>.
France. Commision de Surveillance des Banques Coloniales. 1875-1939. Rapport au président de la république sur les opérations des banques coloniales d'émission pendant l'exercise ... (1873/1874-1936/1937); Rapport au président de la république sur les opérations des banques coloniales d'émission ... (1927/1929-1936/1937). Paris: Imprimerie Nationale.
Main secondary sources:
Alibert, Jacques. 1983. De la vie coloniale au défi international: Banque du Sénégal, BAO, BIAO, 130 ans de banque en Afrique. Paris: Chotard et Associés Éditeurs.
BEAC. 1983. Banque des États de l'Afrique Centrale. Le B.E.A.C. à dix ans. [Yaoundé, Cameroon: Banque des États de l'Afrique Centrale.]
Gérardin, Hubert. 1989, 1994. La zone franc. Tome 1: histoire et institutions. Tome 2: La dynamique de l'intégration monétaire et ses contraintes. Paris: Éditions L'Harmattan.
IMF ARER. 1950-present. International Monetary Fund. Annual Report on Exchange Restrictions (1950-1978), Annual Report on Exchange Arrangements and Exchange Restrictions (1979-1988), Exchange Arrangements and Exchange Restrictions: Annual Report (1989-present). Washington: International Monetary Fund. (Contains information on IMF member countries and some of their dependencies.)
Leduc, Michel. 1965. Les institutions monétaires africaines: pays francophones. Paris: Éditions A. Pedone.
Monetary authorities: Chad
| Dates | Type | Name | Source | Remarks |
| end 1925?
-October 1940 |
private monopoly issue (as part of a currency union) | Banque de l'Afrique Occidentale (headquarters Paris, France) | France, decree of 29 June 1901 (establishing Banque de l'Afrique Occidentale); law of 29 January 1929 (extending its charter for 20 years and introducing minority government ownership); both reprinted in BCEAO (2000, v. 1: 301-3, 380-3) | The Banque de l'Afrique Occidentale was established to be the note issuer for all of French West and Equatorial Africa. It initially conducted its business in Chad through its branch in Brazzaville (Congo-Brazzaville), established at the end of 1925. It did not establish a local branch, in Fort-Lamy (now N'Djamena), until May 1950, which was the first bank in Chad (Alibert 1983: 69-70, 146). The second bank may have been the Banque Nationale pour le Commerce et l'Industrie-Afrique (headquarters Paris, France), in Abéché, in 1953, though it is possible that the Banque Commerciale Africaine (headquarters Paris, France) opened a branch in Fort-Lamy (now N'Djamena) not earlier than 1941. |
| October 1940
-23 July 1942 |
government issue alongside private monopoly issue (as part of a currency union) | Free French government of French Equatorial Africa (headquarters Brazzaville, French Equatorial Africa [now Congo-Brazzaville]) alongside Banque de l'Afrique Occidentale (headquarters Paris, France) | French Equatorial Africa, governor-general's decree-law of 9 October 1940, cited in Mazard (1953: 107) | Following French Equatorial Africa's decision to side with the Free French government during the Second World War, the governor-general authorized government notes called bons de caisse or bons Larminat. This was a step towards establishing a note issue separate from that of French West Africa, which sided with the Vichy French government. Notes of the Banque de l'Afrique Occidentale continued to circulate because it was impractical to replace them all immediately. Mazard (1953: 107 n. 4) observes that the notes were technically illegal, but legalized after the fact by the Free French ordonnance of 24 July 1942 cited below. |
| 24 July 1942
-3 April 1959 |
joint monetary institute (as part of a currency union) | Caisse Centrale de la France Libre (CCFL) (headquarters London, England) / Caisse Centrale de la France d'Outre-Mer (CCFOM) from 2 February 1944 (headquarters Algiers, Algeria / Paris, France from 20 June 1945) / Institut d'Émission de l'Afrique Équatoriale Française et du Cameroun (IEAEFC) from 1 October 1955 (Paris, France) | CCFL: Free French government, ordonnance of 2 December 1941 and ordonnance of 24 July 1942, cited in Alibert (1983: 122, 127); CCFOM: Free French government, ordonnance of 2 February 1944 and France, Ordonnance No. 45-1356, 20 June 1945; IEAEFC: France, Decree No. 55-104, 20 January 1955 and Decree No. 55-940, 15 July 1955 | The headquarters of the Banque de l'Afrique Occidentale was in German-occupied France. The Free French government stripped the bank of the power to issue notes in French Equatorial Africa and Cameroon (ordonnance of 24 July 1942). The CCFL was created on 2 December 1941 as the financial arm of Free French government, and was given note-issuing privileges on 24 July 1942. It was converted into the CCFOM on 2 February 1944. Notes of the Banque de l'Afrique Occidentale ceased to be legal tender in French Equatorial Africa and Cameroon on 1 October 1942. The first local coins were issued in 1943, being a Free French issue for French Equatorial Africa. France, Decree No. 57-244, 24 February 1957, transferred the issuance of coins from the French Treasury to the IEAEFC; France, decree of 13 February 1958, fixed the date of doing so as 1 May 1958. Notes for different member countries were issued with different serial number codes to provide a basis for calculating each country's share of seigniorage. |
| 4 April 1959
-present (2005) |
joint central bank (as part of a currency union) | Banque Centrale des États de l'Afrique Équatoriale et du Cameroun (BCEAC) (headquarters Paris, France) / Banque des États de l'Afrique Centrale (BEAC) from 2 April 1973 (headquarters Paris, France / Yaoundé, Cameroon from 3 January 1977) | France, Ordonnance No. 59-492, 4 April 1959 | The monetary institute was converted into a central bank to prepare for the imminent independence of its members. French influence was reduced by the following agreements: bilateral agreements between France and all member countries concluded 15-17 August and 13 November 1960; the Convention de coopération monétaire entre la République du Tchad, la République Unie du Cameroun, la République centrafricaine, la République populaire du Congo et la République gabonaise, Brazzaville, 22 November 1972; and the Convention de coopération monétaire entre les États membres de la Banque des États de l'Afrique Centrale et la République française, 23 November 1972 (see France, Law No. 72-1163, 23 November 1972). "Africanization" was completed with the transfer of the central bank's headquarters to Yaoundé, Cameroon. Notes for different member countries continued to be issued with different serial number codes to provide a basis for calculating each country's share of seigniorage. Chad joined the IMF on 10 July 1963. |
Exchange rate arrangements: Chad
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| May 1900
-end 1925? |
fixed (as part of a currency union); used French franc and later franc notes of Banque de l'Afrique Occidentale | general histories | French established an outpost at Fort-Lamy (now N'Djamena) in May 1900. French African colonies admitted British coins and in some instances silver Maria Theresa thalers as legal tender up to the mid 1920s, and perhaps later in some cases. The French franc was a decimal currency. | |
| end 1925?
-August 1940 |
pegged (as part of a currency union); 1 local franc = 1 French franc | Alibert (1983: 69-70) | The Banque de l'Afrique Occidentale established a branch in Brazzaville, in neighboring Congo-Brazzaville, in 1925. The bank was required starting in 1929 to make exchanges between France and West Africa without commission fees other than the actual cost of post office or telegraph costs (France and Banque de l'Afrique Occidentale, agreement of 24 February 1927, article 8, reprinted in BCEAO 2000, v. 1: 378). Legally, local francs in what was to become the CFA franc zone were not separate from the French franc until 26 December 1945. | |
| August 1940
-7 February 1944 |
pegged (as part of a currency union); 176.625 local francs = UKŁ1 (and later 43.80 local francs = US$1) | Anglo-Free French agreement of 19 March 1941, cited in Mazard (1953: 105) | Preserved the prewar exchange rate of the French franc with the pound sterling (and later with the US dollar, when the United States entered the Second World War). | |
| 8 February 1944
-5 December 1944 |
pegged (as part of a currency union); 200 local francs = UKŁ1, or 50 local francs = US$1 | Anglo-Free French agreement of 8 February 1944, cited in Mazard (1953: 106) | The Anglo-French agreement devalued the French franc slightly to the level already prevailing in other territories under Free French control. | |
| 6 December 1944
-25 December 1945 |
pegged (as part of a currency union); 1 local franc = 1 French franc | Anglo-Free French agreement of 8 February 1944, cited in Mazard (1953: 106) | Following the liberation of most of France by the Allies during the Second World War, the metropolitan French franc was devalued to the level of the overseas francs under Free French control. Doing so in effect restored the French franc as the anchor currency. | |
| 26 December 1945
-16 October 1948 |
pegged (as part of a currency union); 1 (Central African) CFA franc = 1.70 French francs | France, Decree No. 45-0136, 25 December 1945 | France created the CFA franc at a premium from the former 1-to-1 rate of local francs with French franc. The premium offset most of French franc's devaluation from 50 to 119.10699 French francs = US$1 on 25 December 1945. The revaluation reflected lower wartime economic destruction in the colonies than in France. The new cross rate with the pound sterling was 300 CFA francs = UKŁ1. The name "franc" for the currency came from the French franc. For the meaning of CFA, see the category "Other" in the country information above. | |
| 17 October 1948
-31 December 1959 |
pegged (as part of a currency union); 1 (Central African) CFA franc = 2 French francs | France, Ministry of Finance and Economic Affairs, Avis No. 352 de l'Office des Changes, 17 October 1948 | The CFA franc had followed the French franc's devaluation on 26 January 1948, but this time it was in effect revalued against French franc to offset almost all of French franc's devaluation from 214.392 to 264 French francs = US$1 on 17 October 1948. | |
| 1 January 1960
-2 September 1971 |
pegged (as part of a currency union); 50 (Central African) CFA francs = 1 new French franc | France, Ordonnance No. 58-1341, 27 December 1958; Ministry of Finance and Economic Affairs, Circulaire du 19 novembre 1959 relative au nouveau franc, 19 November 1959; Decree No. 59-1450, 22 December 1959 | France redenominated its franc at 1 new French franc = 100 old French francs. Members of the CFA franc zone never registered gold parities with the IMF. Gold convertibility for all countries ended in practice when the United States abandoned the gold standard on 15 August 1971. | |
| 3 September 1971
-20 March 1974 |
pegged (as part of a currency union), dual rate; official rate 50 (Central African) CFA francs = 1 French franc | IMF ARER (1972: 87) | The second rate, called
the financial rate, was
a managed or perhaps
independent float.
RR: Premium in freer market in low single digits. |
Established a dual exchange rate following France's doing so on 21 August 1971. |
| 21 March 1974
-1 August 1993 |
pegged (as part of a currency union); 50 (Central African) CFA francs = 1 French franc | IMF ARER (1975: 107) | RR: Premiums 8-11% March-June 1983. (My comment: this was a period of fear of devaluation.) | The CFA franc zone ended its dual exchange rate the same day as France. |
| 2 August 1993
-11 January 1994 |
pegged (as part of a currency union); 50 (Central African) CFA francs = 1 French franc, with restricted convertibility | Banque des États de l'Afrique Centrale, decision of 2 August 1993, cited in news reports of that date | Members of the Banque des États de l'Afrique Centrale (BEAC) ceased redeeming CFA franc notes issued by the BEAC circulating outside their borders. | |
| 12 January 1994
-31 December 1998 |
pegged (as part of a currency union); 100 (Central African) CFA francs = 1 French franc | Déclaration commune des chefs d'État et de gouvernement des pays africains membres de la zone UMOA et BEAC, 11 January 1994, in BEAC bulletin, January 1994: 3-4 | The CFA franc was devalued after years of bad credit extended by CFA franc zone central banks to government enterprises depleted foreign reserves. Convertibility of the CFA franc into the French franc resumed. | |
| 1 January 1999
-present (2005) |
pegged (as part of a currency union); 655.957 (Central African) CFA francs = 1 European euro | Conseil des Ministres de l'Union Économique de l'Afrique Centrale, decision of December 1998, cited in news reports | The French franc ended its existence as a separate currency, replaced by the European euro. The CFA franc switched to the European euro as its anchor, at the prevailing cross rate with the French franc. |