Africa gets rid of frank chain
As of January 15, 2020, some countries in West Africa and Central Africa (the decision taken in 1939 for the first time printed and circulated on December 25, 1945) have been forced to use for 74 years, shortly known as the Frank African francs FC FCFA is getting rid of the currency. The FCFA is currently the currency of 15 countries of Portugal's former colony Guinea-Bissau and France's 14 former colonies. 155 million people, 13 percent of Africa's total population, shop with this currency. This abbreviation was originally the “African French Colonies Franc” (Franc des Colonies Françaises d'Afrique), while the African Finance Community Franc (Franc de la Communauté financiére africaine) for those living in the west of the continent in 1960; la cooperation financiére africaine). The economic dependence of these French colonies, which was not yet clear at the time, was maintained until today. This franc, which is now used by 14 African countries and has no valid validity, has led the countries concerned to take permanent measures inevitably. Nowadays, the overburden of France's public debt amounting to 2.5 trillion euros and its interest rates of 22.5 billion euros per month also worries the economies connected to it.
In the fourth quarter of 2019, France's public debt, which amounted to 2 trillion 415 billion euros, corresponds to 100.4 percent of its gross national product (GNP). Compared to the third quarter of this year, a record increase of 39.6 billion euros is seen. The fact that this debt, which was 266.6 billion euros in 1996, has increased tenfold in the last 23 years, reflects the social crisis that now covers the country from the economic point of view, within the octagonal borders of Europe. So much so that public debt has once again exceeded 100 percent, which is equivalent to the level of wealth generated in the country in a year. With 100.7 percent in the first quarter of 2017 and 100.9 percent in the second quarter, public debt exceeded GNP twice. This gives the French treasury a surplus of 22.5 billion euros per month. However, the GNP of countries within the borders of the Maastrich Agreement is not allowed to exceed the 60 percent limit for public borrowing. But the more serious is that the most vulnerable result will emerge, and the frictional part of the issue will be the Frank District, which is under its administration in Africa. Countries that use this currency have been trying to walk on their thorns for a long time. Although the decision of the French Central Bank, which holds 50 percent of their foreign exchange reserves since 2012, seems to be an advantage over the 82 percent implementation in the 1960s, it did not actually stop the process of drifting into the abyss and required a definite separation with Paris these days.
The Frank chain for Africans
France, which gained great opportunities from slave trade, banned slavery in 1848. But the African Franc, the currency he put into practice a century later, was a new chain of economic strikes at the continent's respective countries, which became a matter of moment when they became independent in the 1940s. On June 1, 1983, 36 years have passed since the idea of adopting a single currency in the capital of Guinea, Conakry, to facilitate all kinds of trade between West African countries. Although Muammar Gaddafi set a target for 2014 to implement this idea throughout the continent and devoted a significant amount of financial resources to the necessary work. His murder was the biggest blow to attempts on this issue. The importance of this issue was obvious, and the representatives of the West African Economic and Development Community member countries gathered in Niamey, the capital of Niger on October 24, 2017, would have entered into a common currency by the beginning of 2020.
ECO: Symbol of economic independence
On June 29, 2019 in Abuja, Nigeria's capital, the biggest agenda of statesmen was the common currency. The issue that has longed for years has come to an end and the name of the money to be used is expressed as ECO. There are 14 countries in West Africa and Central Africa that use the Francs. The number of countries linked to the West African Economic Community to be transferred to the new currency is 15. Among them are countries that are not in the franc region such as Nigeria and Ghana. In fact, these two countries have a flexible exchange rate, they want money with autonomy. France, if it can convince, will continue to keep the respective states in line. That is why it recommends the creation of a fixed parity between the ECO and the euro. In fact, some statesmen say that the money to be used independently of the French treasury will not be sound and reliable. In particular, Nigeria strongly opposes a process that will be implemented when Nara already has her own money and the ropes are in the hands of someone else, “This money should be managed only by the countries connected to the community; sovereignty must remain in them..
France, which has kept African statesmen under pressure for years and opposing countries (from the slightest to those who try to undermine the African Franc process), has aligned with internal turmoil and even military coups. He has brought this currency to date as one of the biggest sources of income. Increasing numbers of the continents and especially academically proven intellectuals (mainly economists) and NGO representatives took on leading roles. Their harsh outbursts inevitably led the heads of state to take a decision. Among them are those who claim that the franc is a very stable, stable and well-managed currency, as well as those who have severed ties from Paris and advocated the continuation of these in the countries concerned. Those who demand hundreds of billion dollars of foreign exchange reserves accumulated in the French Central Bank for decades have come to the fore with their statements. But one fact is ignored, even if France agrees to it, can it pay the relevant countries to pay the earnings it trades on the Paris Stock Exchange every day? In the shadow of public debt exceeding its annual GNP, it seems impossible to transfer these resources to countries that use francs. Unfortunately, economic realities are being sacrificed to eco-politics, the economy under the influence of politics.
Benin President Patrice Talon's statement on withdrawing foreign currency sources from France is actually considered as an explanation to soften the environment. There are even those who consider it a political maneuver of France. EKO entered into circulation on January 15, 2020, there are no more days left. What is important here is that France is able to turn this process into its own advantage, which has not been possible in recent years as it has been crushed under its own economic crisis. The fact that EKO paves the way will have serious negative consequences; because the opening of this money will bring with it the persistent demand for foreign exchange resources in the French National Bank. If, in terms of human resources (not much) France still retains the ability to mobilize previous generations of dynamics, as in the colonization process, it will again use the balance of power in the continent for its own benefit and turn to a new unity. But now the fire Sarmis the streets of Paris, France, Africa, on top of a growing economic difficulties in China, Russia, to compete with new actors such as Turkey and Morocco is becoming increasingly impossible.
New process in the ECO region
Eight of the West African countries are freed from the franc, one of the most influential traces of French colonialism. What is happening is a revolution in itself. This will be followed by the French-language process in which they are forced to use the official language instead of their mother tongue. Thus, these steps mean that the post-colonial period, termed “new colonialism de, is also closing.
With the introduction of EKO in the West and Central African countries, the French National Bank will release foreign exchange resources, which it continues to maintain at 50 percent since 2012. Accordingly, the West African Monetary Union will finalize its duties. France will not be able to appoint a representative for the administration of the West African Monetary Union, the monetary policy committee and the monetary commission. But for now, the exchange rate, which is fixed in euros, will continue. In fact, one of the main reasons for the opposition to the franc was the stabilization of the exchange rate against the euro. The increasing activity of China, the United States and other countries on the continent also inevitably entails a challenge to the exchange rate fixed to the euro. In addition, since France is the guarantor of the former eight West African countries in the African Franc region, Paris will maintain financial influence on these countries. Conflicts between countries that are accustomed to using the African Francs in 15 countries are already being discussed.
Even though the ECO region was initially shaped with 15 countries, others will take part in it. Nigeria and Ghana, Ivory Coast and Niger became the leading countries in the circulation of this new currency. 2020 does not mean that the franc will be disabled for EKO. This new money will be in circulation, but everyone will maintain the current situation for the time being. The biggest expectation is the complete elimination of the franc, which is the most serious obstacle to the countries that cannot be developed. When this is achieved, the main obstacles to development moves will be eliminated. Henceforth, France's attempts to hinder the export of raw material resources (which have so far monopolized the decision on which investment to come to countries) will be ended. Africans will now manage their own money with their economists.
[He has been in charge of Ottoman-African relations, has served as Prime Minister's Counselor and Chad Embassy in Africa. Dr. Ahmet Kavas is the Dean of the Faculty of Political Sciences at Istanbul Medeniyet University and the founding president of the African Researchers Association (AFAM)]
https://www.aa.com.tr/tr/analiz/afrika-frank-zincirinden-kurtuluyor/1685313