Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

West, Central African Banks Mull Unifying Francs to Boost Trade

Dec. 18 (Bloomberg) -- The central banks of West and Central Africa are considering combining their currencies, according to Lucas Abaga Nchama, governor of the Bank of Central African States.

The West African and Central African CFA francs are currently separate currencies that are both pegged to the euro. Merging them would boost trade and help fight money laundering, Nchama said in comments broadcast on Radio Malabo, the state broadcaster for Equatorial Guinea.

The franc zone covers 14 African countries, Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Congo Republic, Equatorial Guinea, Gabon, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo.

Six other West African nations -- Nigeria, Ghana, Sierra Leone, Gambia, Guinea and Liberia -- plan to enact a common currency, known as the Eco, by January 2015, 12 years behind an initial target, Temitope Oshikoya, chief executive officer of the West African Monetary Institute, said in an interview in November last year.

The Eco target was pushed back as countries continued to fail to meet standards including single-digit inflation, a budget deficit of not more than 4 percent of gross domestic product excluding grants, and central bank reserves of not less than three months of import cover, according to Oshikoya.

To contact the reporter on this story: Antoine Lawson in Libreville at ankolo@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.