You’re standing in a bustling market in Douala, Cameroon, or maybe N'Djamena, Chad. The air is thick with the scent of roasted maize and diesel fumes. You hand over a colorful banknote to pay for a soda. That bill is the Central African CFA franc. To a casual traveler, it’s just money. To economists, politicians, and the 55 million people living in the CEMAC region, it is a lightning rod for controversy.
Most people lump all "CFA francs" together. That is a mistake.
While its West African cousin is busy rebranding as the "Eco" and cutting old colonial ties with the French Treasury, the Central African CFA franc is sitting in a much weirder, more stagnant position. It’s a currency that basically acts like a time capsule from 1945, and honestly, the lack of movement on reform is starting to cause some serious friction.
The Secret Identity of the XAF
First off, let's get the techy stuff out of the way. The Central African CFA franc goes by the currency code XAF. It’s used by six countries: Cameroon, the Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon.
Here’s the kicker: even though the West African CFA (XOF) has the exact same value, you can’t use them interchangeably. Try spending a Gabonese XAF note in a Senegalese bakery. They’ll look at you like you’re trying to pay with Monopoly money.
The name itself is a bit of a linguistic gymnastics routine. Originally, CFA stood for Colonies Françaises d’Afrique. After independence, they scrambled to find a name that kept the acronym but lost the "colonial" vibe. In Central Africa, it now stands for Coopération Financière en Afrique Centrale.
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Why This Currency Is Actually "Different"
If you've been following the news about West Africa, you’ve probably heard that France is stepping back. They stopped requiring West African nations to deposit 50% of their foreign reserves in Paris.
But in Central Africa? Different story.
As of early 2026, the Central African CFA franc still operates under the old-school rules. The Bank of Central African States (BEAC) is still required to park half of its foreign exchange reserves in an "operating account" at the French Treasury.
Why does this matter? Well, critics like Ndongo Samba Sylla argue it’s a form of "monetary imperialism." Supporters, however, point to the fact that it keeps inflation remarkably low. While neighboring countries like Nigeria or Ghana often struggle with double-digit inflation that eats people's savings, the CEMAC zone usually stays around 3%.
Stability is great. But it comes at a steep price.
The "Strong Currency" Trap
The Central African CFA franc is pegged to the Euro at a fixed rate of $1 \text{ Euro} = 655.957 \text{ XAF}$.
Think about that.
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The Euro is a "hard" currency designed for high-productivity economies like Germany. Central African nations mostly export raw materials: oil, timber, cotton, and gold. When the Euro is strong, the Central African CFA franc gets dragged upward with it.
This makes Gabonese timber or Chadian cotton incredibly expensive on the world market. Basically, it’s like trying to run a lemonade stand but being forced to charge Champagne prices because your "anchor" currency is expensive.
It kills local industry. If it’s cheaper to import frozen chicken from the EU than to raise it in Yaoundé because your currency is artificially "strong," your local farmers are going to go bust. Every single time.
A Quick Reality Check on the "French Guarantee"
The big selling point from the French side is the "unlimited convertibility guarantee." Basically, France promises that if the BEAC runs out of money, the French Treasury will step in so the currency doesn't collapse.
In reality, this guarantee has almost never been used.
Central African nations have historically kept their reserve ratios so high that they are essentially self-insuring. In fact, many experts argue that the CEMAC countries are effectively lending money to France by keeping those billions in Paris, rather than the other way around.
The 2026 Landscape: Is Reform Actually Coming?
While the West African bloc is sprinting (or at least jogging) toward the "Eco," Central Africa is moving at a snail's pace.
There is a deep divide within the CEMAC. You've got countries like the Central African Republic (CAR) that got so fed up they actually legalized Bitcoin as a secondary tender for a while—a move that sent the BEAC and the IMF into a total tailspin.
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Then you have the oil-heavy hitters like Gabon and Equatorial Guinea. For them, the stability of the Central African CFA franc is a safety net when oil prices crash. They aren't in a hurry to jump into a new, unproven currency.
What You Should Actually Do (Actionable Insights)
If you are doing business or traveling in the region, don't let the "stability" fool you into complacency. The Central African CFA franc is in a state of high tension.
- Cash is still king: Despite the rise of mobile money (like MTN MoMo or Orange Money), the physical XAF is what moves the needle in local markets. Always keep small denominations; getting change for a 10,000 XAF note in a rural area is an Olympic sport.
- Watch the Reserves: Keep an eye on the BEAC's "Reserve Cover" ratio. If it dips toward the 20% mark, expect talk of devaluation to start swirling. The last major devaluation in 1994 (where the currency lost 50% of its value overnight) is still a trauma for many.
- Diversify your holdings: If you’re an expat or a business owner in the region, keeping all your assets in XAF is risky given the mounting political pressure for a "break" from the Euro peg.
The Central African CFA franc isn't just a relic; it's a functioning paradox. It provides a roof of stability while simultaneously acting as a ceiling on growth. Whether 2026 becomes the year the "Central African Eco" finally takes shape or remains a year of status quo depends entirely on whether the leaders in Yaoundé and Libreville decide that sovereignty is worth the risk of volatility.
Keep your ears to the ground on BEAC policy shifts. The next few years are going to be anything but quiet.
Current Action Step: If you have upcoming contracts in the CEMAC region, ensure they have "change of law" or currency volatility clauses. The status quo is holding for now, but the political winds in Central Africa are shifting faster than the official bank reports suggest.