« The Ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. » John Maynard Keynes, a British Economist Founding Father of Modern Macroeconomics from his famous book: The General Theory of Employment, Interest and Money , Page 383. Published in 1936.
In 1945, France created the CFA franc as a currency for its colonies. After 78 years , the CFA franc is still in use in France former colonies in west Africa ( Benin,Burkina Faso, Côte d’Ivoire , Mali, Niger, Senegal, Togo , Guinea Bisou ) and in central Africa ( Cameroun, Gabon,RCA, Tchad, Congo Brazzaville, Équatorial Guinea) all of them called independent States up today.
The CFA franc is in fact two, nearly identical currencies employed by these above 14 countries in Africa across two monetary unions , which originate from the colonial currency that France created to foster integration between the various colonies it controlled throughout the early 20th century.
Following the independence of the French colonies, the currencies remained in use under unique arrangements that keeps them guaranteed by French Central Bank and pegged to Euro.
In fact, the CFA franc zone is divided into two monetary unions, the West African Economic and Monetary Union (WAEMU) and the Central African Economic and Monetary Union(CEMAC). While the two currencies maintain identical value, paradoxically they are not inter-changeable. This is in fact another way of France to limit economic transactions and integration between African countries.
The following factors are the most reasonable elements for Mali to leave France’s CFA franc.
⁃ France generate and conduct monetary policy of France’s CFA franc zone. For exemple, France’s unilateral decision to devaluate CFA franc in 1994 proved that France is the sole country who decides the future of CFA franc.
⁃ France’s CFA franc is pegged to euro only, not to other foreign currencies just like US $, Chinese Yuan or Japanese Yen or even Russian Rubble
⁃ France’s CFA franc limit economic integration with our neighbor countries who are not members of WAEMU or ECOWAS
⁃ France’s CFA franc is manufactured in France therefore France control the supply chain of the currency
⁃ With CFA being manufactured in France , it can help France to destabilize our country by financing terrorist group in our region. And that is the fact right now.
What is next for Mali?
The ability to create it own national currency is the utmost attribute of sovereignty of one nation.
This moment is a great opportunity for Mali 🇲🇱 to create our own national currency by leaving the France’s CFA franc just like Republic of Guinea and Mauritania many years ego.
The West African Economic and Monetary Union and ECOWAS sanctions against Mali back in January 9, 2022 are great lessons that we should create our national currency and diversify our economic partners. Because of the current sanctions Mali fiduciary assets were blocked in West African Central Bank BCEAO which is controlled by France.
Since Mali decided to challenge France diplomatically and military, France will never leave Mali alone as long as the country keep using CFA franc which is manufactured in France.
The new currency of Mali will be pegged to a basket of foreign currencies : US $, Chinese Yuan, Russia Rubbles, Japanese Yen, Nigerian Naira, or South African Rand and Euro.
Since France’s CFA is pegged only to Euro at a fixed rate no matter what the economic situation of CFA franc zone , this is why The WAEMU zone is overrated due to the fact that it does not reflect real economic situation of the countries members of the WAEMU zone.
Mali new currency will be flexible to reflect the economic performance of the country.
For exemple if the productivity is high in another words if the balance of payments is positive our national currency exchange rate can increase and it will decreased in case of economic downturns situation.
Mali will be able to set up and plan it own monetary policy which is not the case right because of France’s CFA franc.
Mali national currency will be guaranteed by our National production of Gold. In fact, Mali is third producer of Gold right behind South Africa and Ghana.
In fact, the International Monetary System based on Gold and called Gold Exchange Standard is still alive and well in another way although the former President of US Richard Nixon declared it end in 1971 because US could not guarantee the amount of $ issued around the world by that time. Therefore Mali gold can guarantee our national currency.
May Almighty God bless Mali and Africa.
Bakary Coulibaly
Élan Patriotique
Economist-US Income Tax Specialist
Former HR Block Tax Service District Manager-Manhattan New York
Former Director of Logistics of Millenium Challenge Account-MCA Mali.
