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Standard & Poor's Global Rating rules out possibility of devaluing the CFA franc used in West & Central Africa

Standard & Poor's Global Rating rules out possibility of devaluing the CFA franc used in West & Central Africa

Currency

Standard & Poor’s Global Rating, has ruled out the possibility of devaluing the CFA franc used in West and Central Africa,saying the currency has a stable outlook.

The US rating agency reports if a situation of currency devaluation were to occur, the Republic of Congo in Central Africa would be the most exposed to serious macroeconomic challenges.

Since the emergency conference held in December 2016, two countries with significant systemic risks – Congo and Equatorial Guinea, have not yet entered an agreement with the International Monetary Fund.

Standard & Poors added , that although disputed in several countries, including Cameroon, Benin, Gabon or Senegal, the CFA franc has contributed significantly, to ensure relative price stability in the markets in which it is used, with inflation of less than 3.1%, unlike the African average which is around + 15.1%.