France kept sole CFA responsibility by convincing EU partners the guarantee cost nothing

Evidence

By reassuring its partners that it would not have to shell out any substantial sums to guarantee the convertibility of the CFA and Comorian francs, the French government won the day: a compromise was finally found on the basis of article 111, paragraph 3 and France maintained the exchange rate agreements it had concluded with the African countries of the franc zone. On the other hand, it remained solely responsible for their implementation and would not receive any financial support from the EMU or ECB. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 227

Categorization

• XREF: connects to: Unlimited CFA convertibility is guaranteed by the French Treasury lending as needed; EMU law forced France’s CFA agreements into the exchange-rate cooperation category; France’s CFA convertibility guarantee is backed by zero budgeted euros (+4 more)

Related

• France’s CFA convertibility guarantee is backed by zero budgeted euros (similarity 0.93)
• Unlimited CFA convertibility is guaranteed by the French Treasury lending as needed (similarity 0.91)
• The convertibility guarantee costs France under 1.3 percent of GDP (similarity 0.91)
• France has allocated zero euros to guarantee CFA franc convertibility (similarity 0.91)
• France argued its CFA convertibility agreements were budgetary, not monetary, to escape EU oversight (similarity 0.91)
• France’s convertibility guarantee was a fraud that would never actually materialize (similarity 0.89)
• The French guarantee of the CFA franc was illusory since African reserves exceeded debts (similarity 0.89)
• EMU law forced France’s CFA agreements into the exchange-rate cooperation category (similarity 0.89)
• French Treasury guarantees unlimited convertibility by lending money to franc zone central banks (similarity 0.88)
• The CFA guarantee arrangement secretly benefits France at Africa’s expense (similarity 0.87)
• France classified CFA agreements as budgetary to exclude EU oversight (similarity 0.87)
• France avoided needing dollars to buy from CFA-zone countries. (similarity 0.86)
• CFA francs are non-convertible among the three African franc-zone sub-units (similarity 0.86)
• CFA convertibility guarantee is cheap only because African economies stay small. (similarity 0.86)
• France’s convertibility guarantee enabled capital flight that depleted reserves and forced devaluation (similarity 0.85)

Broader Connections

• France has allocated zero euros to guarantee CFA franc convertibility #expands (0.60) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 246
• The French guarantee of the CFA franc was illusory since African reserves exceeded debts #corroborates (0.55) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 159