Economics
Loveless Union Shelters Timbuktu to Congo From Currency Turmoil
- Western, central Africa politicians debate CFA franc's merits
- Currency's peg to euro helps it sidestep peers' losses
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As Chad President Idriss Deby calls on the nations of western and central Africa to ditch their 70-year-old currency union, the voices of opposition are growing louder.
The prime minister of Ivory Coast, the largest economy in the 14-member CFA franc, says the peg to the euro helps maintain stability and attracts investors. Capital Economics Ltd. and Renaissance Capital argue it keeps inflation down. Deby has his backers, too, with an Ivory Coast opposition leader saying the currency is artificially strong and hobbles competitiveness.