The much awaited bill ratifying the end of the 75-year old CFA franc was adopted on Wednesday by the French Council of Ministers, the spokesperson for the French government, Sibeth Ndiaye said.
“It was during an official visit to Ivory Coast in December 2019 that President Macron and French West African leaders announced a historic reform of monetary cooperation that was to lead to the end of the CFA franc.
“This symbolic end was to be part of a renewal of the relationship between France and African countries,” she said.
The text validates the transition of the CFA franc used by eight French West African countries to become the newly proposed Eco, a currency to be adopted by the entire West African bloc, ECOWAS.
It also marks the end of the centralization of foreign exchange reserves of the eight West African states with the French Treasury.
The future Eco currency will have a fixed parity with the euro.
The eight countries concerned are: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.