CFA franc is the currency of the Congo

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The Republic of the Congo is a former West African French colony, and therefore the history of its currency dates back to the colonial period. The CFA franc circulating in the country as a currency is formally fifteen years older than the country. The Congo gained independence in 1960, and the first colonial franc appeared in 1945.

Currency for the colonies

Even before the Second World War, the idea matured in France that it would be good to create a special money-issue system in order to facilitate the functioning of the colonies. Special banknotes should speed up economic processes outside of France without affecting the entire national economy too much.

So, in 1945, at the suggestion of bankers and big capitalists who had African "interests", the CFA franc appeared, literally - the "Colonial franc of Africa" (colonies françaises d'Afrique). His legitimacy extended to all French territories on the Black Continent.

Independence is independence, and money is important

The irreversibility of certain processes forced France to abandondirect control over overseas territories and cease to be a colonial power. However, economic control was necessary. The young states that gained independence (including the Congo) were asked to stay in the Franc Zone in exchange for financial assistance, loans, and so on. At the same time, the CFA franc, while retaining the abbreviations, undertook to change the offensive "coloniality" in the name to "the franc of financial cooperation in Central Africa" (franc de la Coopération Financière en Afrique centrale).

Republic of the Congo, Gabon, Central African Republic, Cameroon and Chad accepted the offer. This will be the answer to the question of what currency is in the Congo.

Harm or benefit?

Although for many years these countries have been talking about introducing a national currency and leaving the Franc Zone, this is unlikely to happen in the short term. The CFA BEAC countries rely on French finances and have no problems with currency conversion and with the movement of goods.

It is important that they all have common borders, are located in the same region and even have a kindred population, and the single currency helps to solve issues and problems that arise between states more easily and quickly.

In 1986, having seen enough of its neighbors, Equatorial Guinea, which did not have the status of a former French colony, joined the Francophone Financial Union. She was once a colony of Spain.

Don't care, own

At first, these states used the colonial franc. Gradually replaced itnew. Since 1973, coins have been issued both in denominations of whole francs and its hundredths - centimes.

The CFA franc's "selfishness" trend arose between 1976 and 1992, when coins began to mint the letter of the country where it should be predominantly in circulation. Although all francs in all countries of the Zone must circulate without restrictions. By the way, for the currency of the Congo it was the letter C. Earlier and after the name of the country was not applied to the CFA francs.

In 1985, a new member of the Zone, Equatorial Guinea, showed its peculiarity. First, all the inscriptions on her currency were in Spanish, not French. Secondly, for the first time in history, the full name of the country was on the obverse of the coins.

In 1993, letters denoting countries appeared on banknotes. For the currency of the Congo, this is T. In 2002, new banknotes were issued, which are still in use today. It is the banknote issued as the currency of the Republic of the Congo that is shown in the photo at the beginning of the article. You can look at another monetary unit above. On the corner of this banknote of the Congo currency there is a "T", which confirms its belonging to the named state.

Beginning of the end?

Many experts believe that the mentioned letters are the beginning of the end of the CFA franc. Although, of course, it is easier to track cash flows and the contribution of individual countries to a financial union with letters. However, time will tell. In the meantime, the BEAC CFA franc remains the currency of the Congo.