• The central bank says talk of a CFA franc devaluation is unfounded

• BEAC points to stable fundamentals and adequate foreign exchange reserves

• The last CFA franc devaluation dates back to 1994

Amid growing rumors of a possible devaluation of the CFA franc used within the Central African Economic and Monetary Community (Cemac), the Bank of Central African States (BEAC) issued a formal denial in a statement released on Friday, January 16, 2026.

According to the issuing authority for the six Cemac countries, the rumors are “unfounded” and based on neither economic indicators nor any institutional decision. The central bank said the CFA franc remains a stable and fully convertible currency, backed by the monetary cooperation arrangement with France and supported by what it described as comfortable foreign exchange reserves.

“Our currency, guaranteed by cooperation with France and supported by adequate foreign exchange reserves, remains stable and convertible. The economic fundamentals of the Cemac, while facing challenges, do not in any way justify such a measure,” the BEAC said. As a result, “no devaluation of the CFA franc is on the agenda,” it added. The central bank also reaffirmed its core priorities, which include maintaining price stability, preserving foreign exchange reserves, and supervising a sound and resilient financial system.

Foreign exchange reserves under pressure

Foreign exchange reserves, a key pillar of monetary stability, are expected to decline by 2.6% by the end of 2025, reaching CFA6,377.3 billion, according to recent BEAC projections. This would represent import coverage of 4.2 months, down from 4.9 months a year earlier. This trend has led the central bank to tighten monetary conditions to safeguard currency stability and support the rebuilding of reserves.

Economic growth in the Cemac zone is forecast at 2.4% in 2026, slightly lower than the 2.7% recorded in 2024, largely due to a contraction in oil sector activity.

The last devaluation of the CFA franc took place in January 1994, when the currency was devalued by 50%, shifting the parity from 50 to 100 CFA francs per French franc. The move was intended to correct an overvalued currency that was weighing on exports and economic growth, in order to restore competitiveness and revive activity across the zone.

Created on December 26, 1945, under the name “franc des colonies françaises d’Afrique,” the CFA franc has undergone several changes. In 1958, it became the “franc de la Communauté française d’Afrique,” before taking its current names: the “franc de la Communauté financière africaine” for countries of the West African Economic and Monetary Union (WAEMU), and the “franc de la Coopération financière en Afrique centrale” for Cemac member states. While issued by separate central banks — the BCEAO for West Africa — both currencies retain the same convertibility and fixed parity with the euro, guaranteed by France.

SG