Le franc CFA a-t-il sauvé le Sénégal ? – par Thaïs Brouck - Jeune Afrique

Senegal's economic trajectory over the past two decades presents a compelling case study in monetary policy's influence on regional development. The country's membership in the West African Economic and Monetary Union (WAEMU) and its use of the CFA franc has fundamentally shaped its macroeconomic stability, offering critical lessons for European investors seeking exposure to Francophone African markets. The CFA franc, pegged to the euro at a fixed rate of 655.957 CFA francs per euro, creates an institutional framework that constrains inflation and currency volatility. For Senegal specifically, this arrangement has provided several tangible benefits that distinguish it from many regional peers. The currency's stability has facilitated predictable foreign exchange management, reduced transaction costs for international trade, and enabled foreign direct investment without the currency risk premiums that plague neighbouring economies operating with floating currencies. Between 2000 and 2020, Senegal maintained average inflation rates below 3 percent—substantially lower than the West African regional average. This monetary discipline has been particularly valuable during external shocks. During the 2008 global financial crisis and subsequent commodity price collapses, Senegal's economy contracted less severely than comparable nations, partly because the CFA franc mechanism prevented the disruptive currency depreciations that amplified economic distress elsewhere in the