Your reserve guarantees your trading with countries that are not using your currency. So nobreserves no trade bc the country from where you are buying is not using your currency
Prior to the 1995 devaluation cameroon was at zero while all other countries were near zero. From that I see that the health of the more populated countries is a better indicator of devaluation.then the case of guinea Bissau is sad.from what I see Central African reserves are in better health than west African franc countries reserves.
This article provides assurance and certainty regarding the Foreign reserve position of CFA zone countries which is at best grey.•
It throws good light to a topic that is widely misunderstood.
6 comments
Question. How accesible are these reserves? I am curious as to how these would help foster development, particularly in the case of Cameroon.
Your reserve guarantees your trading with countries that are not using your currency. So nobreserves no trade bc the country from where you are buying is not using your currency
I hope that’s a good explanation
Simply put, yes I get it now. Thanks Jason.
Prior to the 1995 devaluation cameroon was at zero while all other countries were near zero. From that I see that the health of the more populated countries is a better indicator of devaluation.then the case of guinea Bissau is sad.from what I see Central African reserves are in better health than west African franc countries reserves.
This article provides assurance and certainty regarding the Foreign reserve position of CFA zone countries which is at best grey.•
It throws good light to a topic that is widely misunderstood.