Consequences of the CFA Franc's Devaluation in West Africa

This work offers an in-depth analysis of monetary evolution in West Africa, focusing on the history of the CFA Franc, the institutional framework of the Franc Zone, and the socio-economic repercussions of the 1994 devaluation in Senegal. It traces the evolution of monetary theories from the pre-colonial period to the post-independence era, including the creation of the CFA Franc in 1945. It examines the institutional reforms and macroeconomic challenges that Senegal faced, particularly structural adjustment programs. It also explores the social impacts of the devaluation, especially in the health and employment sectors, as well as the new trade dynamics with Europe and China. The results highlight a persistent trade balance imbalance and challenges regarding inclusive development. In summary, this thesis highlights the CFA Franc as a controversial colonial legacy, providing financial stability while limiting the monetary sovereignty of African countries.