In a momentous decision, Senegal’s newly elected President, Bassirou Diomaye Faye, has announced the country’s departure from the Franc CFA, a currency that has been closely tied to its colonial past. Senegal is poised to introduce its own national currency by July 2024, following the lead of neighboring countries such as Burkina Faso, Mali, and Niger.
The era of the Franc CFA is over
President Faye’s move signifies a bold step toward asserting Senegal’s sovereignty and reclaiming control over its monetary policies. He emphatically declared, “The era of the Franc CFA is over,” emphasizing the nation’s resolve to print its own money. This decision is part of a broader strategy that includes establishing refineries to process Senegal’s abundant natural resources within its borders.
However, Senegal’s decision has sparked debates and raised concerns among neighboring nations and former leaders. The President of Ghana has cautioned against Senegal’s withdrawal from the Franc CFA, citing potential risks and challenges. Additionally, former Senegalese President Macky Sall, currently residing in Paris, faces the possibility of asset depreciation due to the planned currency shift.
As Senegal prepares for this monumental transition, the international community is closely monitoring the situation. The move carries both economic and political ramifications, as abandoning a currency that has been a staple in West Africa for decades is no small feat. Nevertheless, Senegal’s commitment to charting its own economic course underscores its determination to achieve self-reliance.