AFRICAN FINANCIAL COMMUNITY CURRENCY CHALLENGED

A group of young African rappers is challenging the use of the common currency, saying the CFA franc is a remnant of colonialism and should beabolished. But members of the African elite don't seem interested in change.

"7 minutes contre le CFA" ("7 minutes against the CFA franc") - this is the title of a new rap song which was officiallyreleased on Wednesday in the Senegalese capital, Dakar. Ten musicians from seven African countries are mobilizing opposition to the common currencyof a total of 14 countries in West and Central Africa. Their main criticism: the currency is a remnant of the French colonial era and is an affrontto the sovereignty of African states.

Strictly speaking, the CFA franc is the name given to two currencies used in the African Financial Community. In West Africa, eight countriesshare the common currency known as the West African CFA franc: Benin, Burkina Faso, Ivory Coast, Guinea Bissau, Mali, Niger, Senegal and Togo. Thecentral bank is located in Dakar. The Central African CFA franc is the common currency in six other countries: Equatorial Guinea, Gabon, Cameroon,the Republic of Congo, Chad and the Central African Republic.

Both currencies have existed since 1945, when they were both linked to the French franc. At the moment, one euro is worth approximately 656 CFAfrancs. The French central bank guarantees the value of both currencies. In return, the African countries are required to deposit 50 percent of theircurrency reserves in Paris.

Colonial-era currency
The CFA franc is undeniably a colonial-era currency which was created by France for its former overseas territories in Africa, says Armin Osmanovic,who heads the Rosa Luxemburg Foundation in Dakar.

But after 7 minutes, one question remains unanswered: If the CFA franc goes, what comes next? Should there be a new common currency? Onerestricted to just a few countries? Or should African countries go back to using their national currencies?

"The discussion around this issue is being led by the rappers, as well as by economists and - in France - people on the political left,"says Osmanovic. "Many are speaking out against the CFA franc, but the way forward is still very unclear and politicians are reluctant to discussthe issue publicly." It is not expected to play a large role in upcoming elections in the region, for example in Senegal.

To read the complete article, see:

The CFA franc in West Africa: Time for a change?(http://www.dw.com/en/the-cfa-franc-in-west-africa-time-for-a-change/a-44348656)