On February 15, 2024, Wagadugu, Burkina Faso hosted a ministerial-level meeting of the "Sahel Countries Alliance," which became a recent focal point of attention for both the African continent and France.
Abdulrahman Chiani, the leader of the military government in Niger, revealed to the media that significant currency reforms may be imminent.
This news sparked renewed discussions on the topic of West African currency reforms.
Previously, the military governments of Burkina Faso, Mali, and Niger established the "Sahel Countries Alliance," and the finance ministers of the three nations issued a joint statement announcing plans to introduce a new currency to replace the West African CFA franc.
Subsequently, Senegal's new president, Fahey, announced the cancellation of the West African CFA franc as well.
Since the aftermath of World War II, France has been issuing the West African CFA franc in its former African colonies.
This currency system has undergone multiple reforms but still exists to this day. However, an increasing number of West African countries perceive the West African CFA franc as a "colonial legacy" and have begun to strongly oppose and criticize it.
The statements from leaders in West Africa have led to tension and pessimistic expectations in French public opinion regarding Franco-African relations.
French Foreign Minister Ségolène Royal stated that France does not oppose the reforms but pointed out that the Fahey government might face more uncertainties.
Although West African countries have been striving for monetary independence, the financial system established during the French colonial period remains deeply entrenched. Now, a significant currency reform might just be a small particle stirred up by the wheels of history.
In February 2024, transitional government leader Traoré of Burkina Faso stated, "This is not just a currency issue; we will sever all bonds that make us slaves."
And Malian Prime Minister Maiga stated the need for patience, as the new currency plan requires a comprehensive assessment of its impact. Mali is the only country in the Sahel region that truly issues a new currency.
However, establishing monetary sovereignty involves more than just printing new banknotes; it also faces many challenges, such as sanctions from the European Union and debt issues.
Many experts remain cautious about this currency reform, considering the pace too fast and the new regime lacking internal consensus and international recognition.
This reform is also influenced by nationalist factors, exacerbating the complexity of monetary and financial issues with political and military factors.
Currently, the three Sahel countries and Senegal have not yet announced specific dates and procedures for currency reform.
In fact, France's long-standing control over the West African CFA franc zone has made it heavily dependent on France and the European Union.
In addition to monetary and financial dependence, the economic export structure of the West African CFA franc zone is single, and it is also highly politically dependent on French support.
Canceling the West African CFA franc may lead to currency runs and substantial devaluation, exacerbating inflation and triggering a massive withdrawal of foreign capital.
The solution lies in economic growth. The Sahel Three Alliance first needs to stabilize the regime, restore social production, and create a stable socioeconomic environment to attract foreign investment.
At least before exiting the CFA franc zone, they must have a complete set of alternative plans and contingency plans; otherwise, currency reform may just be a castle in the air.
On January 28, 2024, supporters of the Sahel Countries Alliance celebrated in Niamey, Niger, as Mali, Burkina Faso, and Niger announced their withdrawal from the West African Economic Community.
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