CFA franc parity changed only once since 1948

Evidence

The CFA franc’s exchange rate regime is the first handicap. According to the economist Jeffrey Frankel ‘no single currency regime is right for all countries or at all times’. The inflexibility of the CFA franc – its famous ‘stability’ – is undoubtedly the most eloquent illustration of this simple truth. Since 1948, its parity with respect to its anchor currencies (first the French franc, today the euro) has been changed only once, during the 1994 devaluation. This classifies the CFA franc as a ‘truly fixed’ exchange rate regime, in the words of Jeffrey Frankel, that is, a very restrictive exchange rate regime in which the parity vis-à-vis the anchor currency is, in fact, fixed and not adjustable. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 294

Categorization

• corroborated: 2 independent passages support this claim — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 294
• XREF: connects to: CFA franc parity was frozen at 50 per French franc from 1958 to 1994; Devaluation and revaluation simply shift the fixed CFA-euro parity — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 122; France introduced the CFA franc to several African colonies in 1945 — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 23 (+2 more)

Related

• CFA franc parity was frozen at 50 per French franc from 1958 to 1994 (similarity 0.97)
• The CFA franc’s parity was set without regard for local economic realities (similarity 0.92)
• Devaluation and revaluation simply shift the fixed CFA-euro parity (similarity 0.90)
• The CFA franc was deliberately overvalued against the metropolitan franc. (similarity 0.89)
• The CFA franc’s fixed peg forced colonies to absorb French devaluations helplessly (similarity 0.88)
• Paris imposed a currency overvalued against the metropolitan franc without economic justification. (similarity 0.88)
• CFA ‘stability’ masks currency fluctuation against dollar and pound (similarity 0.87)
• CFA franc value is set politically, insulated from market economic conditions (similarity 0.87)
• The devaluation doubled France’s financial capacity in CFA francs overnight. (similarity 0.87)
• France introduced the CFA franc to several African colonies in 1945 (similarity 0.87)
• The CFA franc originated in 1945 as a Françafrique control tool. (similarity 0.86)
• An overvalued CFA franc was engineered to reorient colonial trade toward France (similarity 0.86)
• The 1994 devaluation capped decades of Paris refusing to adjust the overvalued CFA franc (similarity 0.86)
• The CFA franc is the central weapon of Françafrique’s neocolonial domination (similarity 0.86)
• Colonial territories absorbed the costs of repeated French franc devaluations. (similarity 0.85)

Broader Connections

• Devaluation and revaluation simply shift the fixed CFA-euro parity #expands (0.70) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 122
• France introduced the CFA franc to several African colonies in 1945 #qualifies (0.55) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 23
• The 1994 devaluation capped decades of Paris refusing to adjust the overvalued CFA franc #corroborates (0.55) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 217
• The CFA franc’s fixed peg forced colonies to absorb French devaluations helplessly #expands (0.40)