Franctrade

Chart of the Week: Foreign reserve position of CFA franc zone countries, West and Central Africa

by admin

cfa reserves cfa xtries

Sources: IMF, FrancTrade.com

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6 comments

Nkemish June 16, 2017 - 9:37 pm

Question. How accesible are these reserves? I am curious as to how these would help foster development, particularly in the case of Cameroon.

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Jason June 16, 2017 - 10:05 pm

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

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Jason June 16, 2017 - 10:06 pm

I hope that’s a good explanation

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Nkemish June 16, 2017 - 11:06 pm

Simply put, yes I get it now. Thanks Jason.

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Jason June 16, 2017 - 10:01 pm

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.

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Bernard Che Cho June 16, 2017 - 11:53 pm

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.

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