France has allocated zero euros to guarantee CFA franc convertibility

Evidence

Ultimately, France once again demonstrated that its guarantee is a myth. It is sufficient to examine the budget laws of the years 2016, 2017 and 2018 to confirm this: as already stated in Chapter 2, the French government has not allocated any funds to ensure, if necessary, the convertibility of the CFA franc. The amount indicated on the line dedicated to the ‘monetary agreements’, which refers to the Treasury’s commitments towards the BEAC, the BCEAO and the BCC, is zero euro. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 246

Categorization

• XREF: Pays off Chapter 2’s earlier statement about the absence of French guarantee funding — this chapter confirms via budget law lines. — connects to: CFA francs are non-convertible among the three African franc-zone sub-units; Unlimited CFA convertibility is guaranteed by the French Treasury lending as needed; France’s convertibility guarantee was a fraud that would never actually materialize (+9 more)

Related

• France’s CFA convertibility guarantee is backed by zero budgeted euros (similarity 0.95)
• The convertibility guarantee costs France under 1.3 percent of GDP (similarity 0.93)
• Unlimited CFA convertibility is guaranteed by the French Treasury lending as needed (similarity 0.93)
• France’s convertibility guarantee was a fraud that would never actually materialize (similarity 0.92)
• France kept sole CFA responsibility by convincing EU partners the guarantee cost nothing (similarity 0.91)
• French Treasury guarantees unlimited convertibility by lending money to franc zone central banks (similarity 0.90)
• France argued its CFA convertibility agreements were budgetary, not monetary, to escape EU oversight (similarity 0.89)
• CFA francs are not convertible anywhere in the world outside the French Treasury framework (similarity 0.88)
• The French guarantee of the CFA franc was illusory since African reserves exceeded debts (similarity 0.88)
• CFA francs are non-convertible among the three African franc-zone sub-units (similarity 0.88)
• France’s convertibility guarantee enabled capital flight that depleted reserves and forced devaluation (similarity 0.86)
• France avoided needing dollars to buy from CFA-zone countries. (similarity 0.86)
• France classified CFA agreements as budgetary to exclude EU oversight (similarity 0.85)
• The CFA guarantee arrangement secretly benefits France at Africa’s expense (similarity 0.84)
• The devaluation doubled France’s financial capacity in CFA francs overnight. (similarity 0.82)