Togolese politician shares why W African nations should replace CFA franc with ECO currency

A Togolese politician Kako Nubukpo recently explains why African countries need to get out of the old colonial currency. He is one of a few Africans who criticize CFA franc system.

"I was a manager of the Central Bank between 2000 and 2003, so I had to evaluate the impacts of the direct interest rates of the Central Bank of West African States (BCEAO) on economic growth. in the UEMOA zone, I realized that there was no impact. So I wondered why the monetary instruments we had at the Central Bank were not operational?" Kako Nubukpo said.

According to him, the main objective of the Central Bank is the defense of exchange rates between the euro and the CFA franc. "While for me the objective of monetary policy must be to finance the real economy. I think BCEAO should be more concerned with growth and job creation. The CFA franc system does not deal sufficiently with financing the economy of the franc zone countries in the long term," he said, APA noted.

Kako Nubukpo was asked for solution instead of CFA franc. According to him, the ECO currency is a very good initiative. It will strengthen the integration of the Economic Community of West African States (ECOWAS). "The three points that seem important to me are fiscal solidarity, the vision we have of integration, which is the massive creation of jobs that must be at the heart of our regional integration, we must involve people in the management monetary," he added.