CFA Franc
 |
Definition of 'CFA Franc'One of two African regional currencies backed by the French treasury, and pegged to the euro. CFA franc can refer to two either the Central African CFA franc or the West African CFA franc. Although they are separate currencies, the two are effectively interchangeable as they have the same monetary value against other currencies. However, they could theoretically have different values if France decides it."CFA" has had a few meanings over the years. Between 1945 and 1958 CFA stood for "colonies françaises d'Afrique", referring to former African colonies of France. Between 1958 and the independence of the nations using the CFA in the early 1960s stood for "communauté françaises d'Afrique" (French Community of Africa). Finally after independence and to this day it stands for "Communauté financière d'Afrique" (African Financial Community). |
 |
Investopedia explains 'CFA Franc'The CFA franc was created in 1945 following the end of the Second World War. Previously, French colonies had their currencies pegged to the French franc, but the Bretton Woods Agreement ratified in 1945 had the French franc pegged to the dollar, devaluing the French Franc. By creating a new currency, the CFA Franc, France was able to avoid devaluating currencies in its colonies. |
Related Definitions
Articles Of Interest
-
Currency Exchange: Floating Rate Vs. Fixed Rate
Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers. -
The Pros And Cons Of A Pegged Exchange Rate
A pegged currency can give a country many advantages, but these advantages come at a price. -
Dual And Multiple Exchange Rates 101
Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work. -
The Yen Is Setting Up To Be An Attractive Long-Term Investment
As Japan embarks on quantitative easing, the yen has come under pressure. Will it continue to be the source of big profits in the latter half of 2013? -
3 Costly Spelling Errors
History has proved that some spelling errors can cost companies and governments millions of dollars. -
The Most Counterfeit-Proof Currencies
The IACA awards provide some of the best insight into the currencies that are proving the most difficult to fake. -
An Evaluation Of Emerging Markets
Get the full story on this asset class before you write it off as too risky. -
An Introduction To Complementary Currencies
There are alternatives to national currencies. Discover complementary currencies and how they work. -
Who Holds The Largest Gold Reserves?
The biggest holders of gold account for 30,500 of the world's estimated 160,000 tonnes. -
The Gold Standard Revisited
Think the value of gold is unshakable? Read this chronicle of its rise and fall.
Free Annual Reports
