CFA critics demand flexible exchange rates, development-oriented central banks, and banking reform

Evidence

According to the critics of the CFA franc, the following changes are essential: moving towards a more flexible exchange rate regime for the countries of the franc zone; getting the central banks of the zone to take into account growth and development in addition to price stability, and to coherently coordinate their monetary policy with national budgetary policies; reforming the local financial and banking systems to facilitate the financing of the economies; and strengthening the fiscal solidarity between states. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 323

Categorization

• DEFINE: Lists the concrete reform agenda critics propose, contrasting with the status quo described earlier.
• XREF: connects to: Reformers demand flexible exchange rates and growth-oriented central bank policy; Currency independence alone cannot succeed without a self-centred development model; Fixed exchange rates force austerity when competitiveness declines (+1 more)

Related

• Reformers demand flexible exchange rates and growth-oriented central bank policy (similarity 0.92)
• Currency independence alone cannot succeed without a self-centred development model (similarity 0.87)
• CFA franc parity was frozen at 50 per French franc from 1958 to 1994 (similarity 0.81)
• The CFA franc’s parity was set without regard for local economic realities (similarity 0.81)
• Fixed exchange rates trade employment stability for external balance (similarity 0.81)
• CFA franc parity changed only once since 1948 (similarity 0.81)
• CFA ‘stability’ masks currency fluctuation against dollar and pound (similarity 0.81)
• Exiting the CFA requires recovering all tools of economic sovereignty. (similarity 0.81)
• The proposed eco currency is the CFA franc under another name. (similarity 0.80)
• The CFA franc was a political choice that deprived non-adapting African actors of credit (similarity 0.80)
• CFA francs are non-convertible among the three African franc-zone sub-units (similarity 0.80)
• CFA francs are not convertible anywhere in the world outside the French Treasury framework (similarity 0.80)
• Fixed exchange rates force austerity when competitiveness declines (similarity 0.80)
• The French guarantee of the CFA franc was illusory since African reserves exceeded debts (similarity 0.80)
• The CFA system gives France instruments to steer franc-zone politics (similarity 0.80)