European Economic Integration and the Franc Zone : the Future of the CFA Franc after 1996: Part I : Historical Background and a New Evaluation of Monetary Co-operation in the CFA Countries

"The general objective of this study is to assess the impact of a unified monetary authority in Europe on the FZ and also to assess the possible options in relation to the current CFA monetary arrangements. The specific goal of this part is to give an evaluation of the FZ co-operation scheme. However, the establishment of the FZ in the colonial period was a political as well as an economic undertaking. Accordingly, in order to understand the institution fully, Section I provides an historial account of the establishment of the FZ. Section II gives an evaluation of the CFA franc monetary co-operation system based on the methodology of pooled reserves and gives an assessment of the overall UMOA membership. Section III tests whether the Franc Zone is an optimum currency area. "