Franc zone central banks bypass tender rules for banknote production
Evidence
However, the way this happens is questionable. First, it should be noted that the central banks of the franc zone do not issue call for tenders for the production of their currencies, contrary to the standard rules of good management. One may ask why more than 70 years of ‘monetary cooperation’ have not allowed 15 African countries to have the capacity to produce their own banknotes. Some justify this situation by saying that the manufacturing process is too complex for African countries. But this argument is not very convincing, especially in the long run. A country like Kenya cooperates with a private company that has agreed to outsource the production of the shilling to Kenya. If the Democratic Republic of the Congo was able to obtain the necessary means to manufacture its currency, the countries of the franc zone should be able to do so as well. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 244
Categorization
- XREF: Connects to the broader governance critique in the book’s earlier chapters about the lack of sovereignty in monetary cooperation. — connects to: Monetary sovereignty let Nigeria avoid IMF subordination where franc-zone states could not
Related
- Monetary sovereignty let Nigeria avoid IMF subordination where franc-zone states could not (similarity 0.81)
- Monetary sovereignty let Nigeria escape IMF where CEMAC states could not (similarity 0.80)
- African social movements demand monetary sovereignty and reject CFA symbols (similarity 0.79)
- Franc zone rules forbade members independently negotiating trade agreements. (similarity 0.79)
- Outsourced banknote production costs franc-zone states over half a billion euros (similarity 0.78)
- The franc zone prohibited member states from negotiating trade independently (similarity 0.78)
- Currency issuance is inseparable from national sovereignty (similarity 0.78)