West African Economic and Monetary Union

A monetary agreement between eight countries in Western Africa: Benin, Burkina Faso, Cote d’Ivôire, Guinea-Bissau, Mali, Niger, Senegal and Togo. The common currency of the WAEMU is the CFA franc, or franc de la Communauté Financiére de l’Afrique. It is issued by the Banque Centrale des Etats de l’Afrique de l’Ouest. The CFA franc has been pegged to the French franc since 1947; when France adopted the euro in 1999, the CFA was pegged to the euro. Only one devaluation has occurred during the history of the currency peg. In January 1994, the CFA was devalued to CFA 100 from CFA 50. The countries using the CFA franc have an arrangement with the French treasury to maintain their currency peg and take the sole responsibility for guaranteeing convertibility of CFA francs into euros.