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reddog

The CFA Franc: Italy calls France out on exploiting Africa

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The CFA Franc:

https://www.google.com/amp/s/www.bbc.co.uk/news/amp/world-europe-46955006

Got to admit I had never heard of this thing

The US has the exorbitant privilege of being the world currency.

But France has the exorbitant privilege of controlling from the French national bank a currency used by 14 African countries. 

They have to keep half their reserves in France, have French people on their national bank board's, and I guess the French can create this currency like the US can create dollars (not 100% sure how money creation works for this currency)

 

Any thoughts?  Was Italy right to call them out or just trying to distract from Italian internal problems? 

 

 

Edited by reddog

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The only banks involved in this financial system are French, so is nothing else the "Cantillon effect" of creating money from loans on the CFA Franc must be pretty good for French banks and Paris.

Edited by reddog

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48 minutes ago, reddog said:

The only banks involved in this financial system are French, so is nothing else the "Cantillon effect" of creating money from loans on the CFA Franc must be pretty good for French banks and Paris.

No doubt. I wouldn't imagine France would bother with such a bizarre arrangement unless there was something in it for them. 

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12 hours ago, bushblairandbrown said:

No doubt. I wouldn't imagine France would bother with such a bizarre arrangement unless there was something in it for them. 

of course not that is how business works - to make a profit

personally I think Africa is such a total basket case I would not get involved but each to their own 

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2 hours ago, happyguy said:

of course not that is how business works - to make a profit

personally I think Africa is such a total basket case I would not get involved but each to their own 

Africa has phenomenal mineral resources, the world is beating down the door to get them

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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