 In an interview in February the president of Burkina Faso said something very striking that shows that he is a man on a mission to transform Burkina Faso. He said, perhaps everything we've done has surprised you, hasn't it? Don't worry, more changes are coming that might still surprise you. We will break every tie that has kept us in slavery. What an iconic statement. Traore's statement proves that all that he has done since assuming power in Burkina Faso was planned, and none of those actions were taken on impulse. His statement is a slap in the face of those who say that because he is a military man he doesn't know what he is doing and cannot rule a country. As the captain has said, everything they have done has certainly surprised the world, especially the West, and now they are about to surprise the West, especially France, with another move, the creation of a new currency. Captain Traore says the plan is to break all ties that have kept the country in slavery, and we can all agree that the CFA Franc, the currency that is currently being used by 14 African countries, including Burkina Faso, is something that has kept these nations in slavery. Created in 1954 as a currency for all its African colonies, France used this currency to maintain significant economic and political influence over Africa because it had control over the currency's convertibility and monetary policy. This means that with the aid of the CFA Franc, France could manipulate the money supply, interest rates, and currency valuation across Francophone Africa all the way from Paris. In addition to this, France also controlled the money reserve of Francophone Africa because Francophone Africa was required to at first put 100% of their money reserve in France's bank. Later on, it changed to 70% and it is currently 50%. So the situation was that Francophone Africa couldn't print or issue currency, they couldn't control monetary policy without approval from France, and they had to keep half of their money reserves with France. For decades, the use of CFA Franc by African countries, which are supposed to be independent, has been heavily criticized, but France has repeatedly defended the currency, saying that it is necessary to promote monetary stability, facilitate economic integration, and enhance overall economic performance. Supporters of the CFA Franc also argue that the currency is a useful buffer against inflation because it is pegged to the Euro. However, according to Senegalese economist Andongo Samba Silla, who is head of research and policy for Africa at International Development Economics Associates, the CFA was created not for the benefit of African states, but for France to protect itself against the rise of the United States dollar. He went on to explain that from a purely practical economic standpoint, the CFA is not a beneficial currency or system for its user states, because the long-term analysis of the GDP of countries using the CFA Franc reveals that since their independence, none of these countries have recorded as much development as they should have if the CFA Franc was truly for their benefit. The highest income per capita any of these nations had experienced was in the 1970s. Samba further explained that the fact that the CFA Franc is pegged to the Euro is even detrimental to the economies of Francophone countries because their exports are priced and traded in US dollars. Thereby, they make their products, which are primarily commodity products, uncompetitive in the international market. This system undermines the economic freedom of Francophone Africa because it traps them in a neo-colonial model that favors foreign companies over local companies. In 1962, Mali tried to break free from this economic and financial bondage by creating its own currency one year after independence, called the Malian Franc. However, a combination of internal divisions and France's fierce determination not to allow any of its former colonies to have complete independence led to the Malian Franc being abandoned and Mali being integrated into the CFA zone in 1984. Since then, no other Francophone country has attempted to break away from these economic shackles. However, in 2019, Ivorian President Alasen Watara, together with his French counterpart President Macron, released a press statement saying that the CFA as it had existed until then was no more. According to them, the Central Bank of West African States is no longer required to deposit half of its foreign exchange reserves with the French Treasury. The name of the currency, CFA Franc, will be changed to the Eco and France will no longer govern the management of the currency. Well, it's 2024 and the CFA Franc has not been changed to Eco, so we can also conclude that France is still governing the management of the currency. In other words, nothing has changed. This is why Burkina Faso, Mali, and Niger have decided to pull their resources together and create a common currency for their confederation. In September 2023, these three countries formed a military alliance that would allow them to combine their resources and fight against the escalating threat of the jihadist rebel groups that have plagued their countries for years. However, it didn't stop there. Ibrahim Traor went on to announce that they had decided to evolve the alliance from a military alliance to a full-fledged political, economic, and monetary union. He added that plans were in place to set up a confederation which would help to counter any external threat. Four months later, Burkina Faso, Mali, and Niger announced their withdrawal from the regional bloc, Eco Was, which they said had deviated from the original ideals of the founding father and had turned into a puppet organization for the West and a threat to their own members. According to Ibrahim Traor, the next logical step after withdrawing from the bloc to ensure complete sovereignty for these nations is to create their own currency, free from the hold of France's influence. Niger's military junta, General Tiani, also confirmed this when he came out days later to say that currency is a sign of sovereignty. The AES member states are engaged in the process of recovering their full sovereignty. It is no longer acceptable for our states to be France's cash cow. In November 2023, the finance ministers of each of these countries had already met to discuss the option of setting up a monetary union, meaning that the idea of creating a new currency is something that has been deliberated on. Currently, everyone is waiting with bated breath to see the next move the junta will make in line with the creation of a new currency. Because the fact is, creating a new currency is much more than printing new banknotes. They would have to erode decades-long financial systems and replace them with a better financial system. According to Tierno Thune, an expert on monetary policies and unions between West African states, in order to successfully launch and maintain a multilateral currency, several key factors have to be considered. First, macroeconomics and fiscal policy must be carefully coordinated, meaning that Burkina Faso, Niger and Mali will have to closely coordinate their economic and budgetary policies in order to ensure currency value stability and eliminate trade imbalances. Doing this will help to sustain economic actors confidence, while also encouraging regional growth. Secondly, strong monetary management institutions, such as a shared central bank, must be formed that will be responsible for currency management. This central bank must have sufficient authority to carry out an independent and stable monetary policy, as this will help to preserve the currency's value while also addressing cyclical volatility. Third, the three countries will have to establish a unified single market, a move that is very critical. The single market will ensure the free flow of commodities, services, capital and labor, which will help boost economic progress and strengthen regional cooperation. The current framework established by the West African Economic and Monetary Union provides a substantial benefit in this area. Finally, mechanisms for monitoring and resolving crises should be implemented. Common reserve funds and currency swap arrangements, for example, could aid in the mitigation of external and internal shocks to the new currency. Currency swaps, which involve two parties exchanging sums in two different currencies for a set length of time at a defined rate, can be used to control exchange rate risks and enable cross-border finance. While the world awaits for the next move by the military hunters, we can't help but applaud their initiative in deciding to form a new currency. There may be risks involved as some analysts have pointed out, but the fact is, the benefit far outweighs the risks. First, creating a new currency would grant complete independence to these countries. Secondly, establishing a larger monetary zone will foster greater trade integration and improved resource allocation. It would also enhance the country's flexibility in dealing with external partners. Thirdly, by joining a new monetary union, these three countries could also benefit significantly from increased trade integration, independence from external partners, lower transaction costs, and investor attractiveness. This is a bold move from Ibrahim Traore and his counterpart and the whole of Africa welcomes this move. What are your thoughts? Let us know in the comments section below. Don't forget to like, subscribe, and share this video.