The CFA central banks violate their own strict controls when serving French interests.

Evidence

Several scandals involving the BEAC and the BCEAO have shown that the CFA system, which is generally very strict and repressive, can also be very lax when it comes protecting France and its allies. One of these cases involved the highest authorities of the BEAC and Société Générale in 2008: in the midst of the international financial crisis, the BEAC’s governor, Philibert Andzembé, a Gabonese national, invested €500 million in a high-risk financial product of Société Générale. He did so in violation of the bank’s regulations and unbeknownst to his board of directors. The operation proved to be disastrous: the BEAC lost 16.4 billion CFA francs, or €25 million. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 277

Categorization

• XREF: Contradicts the common presentation of the CFA system as rigidly controlled by France on Africa’s behalf. — connects to: The CFA franc’s real purpose was draining colonial wealth to France.; France’s strong-franc policy worsened CFA countries’ competitiveness; The CFA franc’s fixed peg forced colonies to absorb French devaluations helplessly (+4 more)

Related

• The CFA guarantee arrangement secretly benefits France at Africa’s expense (similarity 0.88)
• France used the BCEAO Central Bank to paralyze a targeted African government (similarity 0.86)
• France’s guarantee is backed by pooled African reserves and French central bank seats (similarity 0.86)
• African criticism did not alter no French control of the CFA system. (similarity 0.85)
• The CFA franc’s real purpose was draining colonial wealth to France. (similarity 0.85)
• The CFA franc is the central weapon of Françafrique’s neocolonial domination (similarity 0.85)
• The CFA franc was a colonial instrument depriving African actors of credit. (similarity 0.85)
• French Treasury supervision is the backbone of the CFA system’s operations (similarity 0.85)
• The CFA system gives France instruments to steer franc-zone politics (similarity 0.84)
• The CFA franc’s parity was set without regard for local economic realities (similarity 0.84)
• The CFA franc was a political choice that deprived non-adapting African actors of credit (similarity 0.84)
• France’s strong-franc policy worsened CFA countries’ competitiveness (similarity 0.84)
• The French guarantee of the CFA franc was illusory since African reserves exceeded debts (similarity 0.84)
• Self-interest blinded the French to unequal benefits of development (similarity 0.84)
• France’s own anti-inflation policies against the mark caused the CFA overvaluation that forced crisis. (similarity 0.84)

Broader Connections

• The CFA guarantee arrangement secretly benefits France at Africa’s expense #corroborates (0.80) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 146
• France’s strong-franc policy worsened CFA countries’ competitiveness #expands (0.70)
• The CFA franc’s fixed peg forced colonies to absorb French devaluations helplessly #expands (0.60)
• The CFA system gives France instruments to steer franc-zone politics #expands (0.60)
• Franc-zone central banks must restrict domestic credit to defend the fixed euro parity #complicates (0.55) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 131
• The CFA central banks subordinate domestic credit to defending the euro parity. #qualifies (0.50) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 308