Devaluation of the Colonial Franc
novembre 22, 2011 22 Commentaires
Source : Notre voie : 11/21/2011
This is privileged information. The member countries of the CFA-Franc-Zone will soon be brooding over “black thoughts.” except for last-minute reorganization, in forty days exactly, that is, on January 1, 2012, the CFA Franc will be devaluated, once again. The CFA, which is currently pegged to the euro at the exchange rate of 1 euro for 655.59 CFA, will soon fall at the rate of 1,000.00 CFA for 1 euro. According to a European diplomat, French president Nicolas Sarkozy has charged Alassane Dramane Ouatara with bringing the news to his peers of the WEAMU (West African Economic and Monetary Union); which explains Ouattara’s last week’s grand West African tour.
“Denis Sassou Nguesso of Congo-Brazzaville has been directed to inform his peers of the Monetary and Economic Community of Central Africa (CEMAC) and also of the Comoros Islands,” the diplomat stresses, adding that Sarkozy has taken upon himself to personally notify susceptible Senegalese president Abdoulaye Wade, who is presently facing social and political discontent at home. Wade is expected to later inform his peer of tiny Guinea-Bissau.
The decision to devaluate the CFA is a consequence of the crisis in the Euro-Zone, which has for the most part been carried by Germany. Our source indicates that Merkel has stressed to Sarkozy the importance of putting some budgetary order in France’s ex-colonies before it is too late. However, it is clear that this measure is less intended to shelter the economies of the CFA-Zone than to save the Euro-Zone by preventing a further crash of France’s economy, as the burden of saving the euro becomes too much for Germany to bear. How would CFA devaluation really help France?
France’s gain would be enormous in financial and budgetary terms. The war that France fought openly against Cote d’Ivoire in April 2011, and which resulted in the fall of President Gbagbo and the installation of puppet Alassane Ouattara, was as bloody and savage as to obliterate most nationalist inclinations in Africa. The war has eradicated any tendency in French-speaking African leaders to enfranchise their countries’ economies from France’s dominion by diversifying their political and economic partnerships. In Cote d’Ivoire, in the aftermath of France’s 2011 military assault, all the 1961 Franco-Ivorian “agreements” got revived. French companies are now snatching all the contracts in the country. French Bouygues has taken over the economy of Cote d’Ivoire. Today, it appears normal that Sarkozy should compel the government of Cote d’Ivoire to use France as an indispensable go-between on the global market. France has priority right in Cote d’Ivoire. It is first to France that Cote d’Ivoire should sell its export commodities and from France that it should buy its imported goods. With the CFA devaluation, countries of the CFA-Zone will spend a lot of CFA in exchange for few goods from France. This inequality in the terms of exchange, compounded with France’s shameless exploitation of Francophone African agricultural and geological resources, means that very soon France will garner the billions of Euros Sarkozy has been desperately seeking everywhere in order to pull France out of its economic slump. As an economic expert has once predicted, African countries will use 40% of their assets to refurbish France’s broken economy.
As it happened during the 1994 CFA devaluation, once again aid-seeking African countries will receive a lot of money from European countries, since the euro’s value will increase with the devaluation of the CFA. Once again, the naïve praise-singers lodged in African presidential palaces, unaware of the deception, will greet the “rain of billions” brought down by European “benefactors” in a carnivalesque celebration. Future generations of Africans, once again, will be left to service huge debts to Europe with high interest rates.
The cost of foodstuff, which has skyrocketed since Ouattara’s usurpation of power in Cote d’Ivoire, will rise even higher from January 1 onward. The devaluation is only advantageous to those who export. However, most countries in the CFA-Zone do import more than they export. They import almost all of their manufactured goods, their processed food, and their rice. Starting January 2012, African importers will need to spend 1,000 CFA for every 1 euro-worth of the commodities they buy from Europe. African retailers will raise their prices on local markets to compensate for their losses. The crunch will be felt in African pots and pans and gas tanks. The poor African populations will only keep enduring, powerlessly.
By Abdoulaye Villard Sanogo, translated by Martial Frindéthié