Monday, December 12, 2011

Time bomb for Biya: devaluation of CFA Franc

Bamenda - Devaluation of CFA Francs in January 2012 is a 
time bomb for Biya. Cameroonians and African countries using CFA francs will face toughest time beginning January 2012. Following scheme by France to devalue the CFA francs of its colonies to enable her stabilise her economic problems. 
The cost of foodstuff and basic commodities already skyrocketing will rise even higher from january 1st onward. This may cause Cameroonians to take to the street. It is feared that the nation wide strike would be more than that of February 25 2010, given that Cameroonians are stll smarting the stolen victory of the opposition Party at the April 9 2011 presidential election.
The devaluation is only beneficial to those who export. Most countries in the CFA-Zone do import more than they export. In this light, the CFA, which is currently pegged to the euro at the exchange rate of 1 euro for 655.59 CFA, will soon fall at the rate of 1,000 CFA for 1 euro.
The decision to devalue the CFA is a consequence of the crisis in the Euro-Zone, which has for the most part been carried by Germany. This also is intended to protect the economies of the Euro Zone from further crash of French economy as the burden saving the Euro has become too heavy for Germany to bear. All of this will be detrimental to the African French colonies that will require more Euro in the import trade.
France would gain enormously in financial deal at the expense of French African countries. These are some of the economic exploitative moves of the West that late Colonel Gadaffi of Libya stood against. 
France spearheaded his elimination and is now implementing the hidden economic agenda he schemed to continue French colonial grip on her colonies.
This disproportion in the terms of exchange, compounded with France’s shameless exploitation of Francophone African agricultural and geological resources, means that very soon France will gain the billions of Euros Sarkozy has been desperately seeking everywhere in order to pull France out of it’s economic slump. 
Economic experts have predicted that African countries will use 40% of their assets to restore France’s broken economy.
The war that France fought openly against Cote d’Ivoire in April 2010, and which resulted in the fall of President Gbagbo and the installation of  Alassane Ouattara, was as bloody and savage as to obliterate most nationalist inclinations in Africa. 
The war has eradicated any tendency in French-speaking African leaders to enfranchise their countries’ economies from France’s command by diversifying their political and economic partnerships.
In Cote d’Ivoire, the aftermath of France’s 2010 military assault is the re introduction of all the 1961 Franco-Ivorian colonial agreement. French companies are now snatching all the contracts in the country. French Bouygues has taken over the economy of Cote d’Ivoire.
Today, it appears normal that Sarkozy should compel the government of Cote d’Ivoire to use France as an indispensable go-between on the global market.
France has priority right in Cote d’Ivoire. It is first to France that Cote d’Ivoire should sell its export commodities and from France that it should buy its imported goods.
With the CFA devaluation, countries of the CFA-Zone will spend a lot of CFA in exchange for few goods from France. As it happened during the 1994 CFA devaluation, once again aid-seeking African countries will receive a lot of money from European countries, since the euro’s value will increase with the devaluation of the CFA.
Once again, the naïve praise-singers lodged in African presidential palaces, unaware of the deception, will greet the ‘rain of billions’ brought down by European ‘benefactors’ in a carnivalesque celebration. 
Future generations of Africans, once again, will be left to service huge debts to Europe with high interest rates.
They import almost all of their manufactured goods, their processed food, and their rice. Starting January 2012, African importers will need to spend 1,000 CFA for every 1 euro-worth of the commodities they buy from Europe. African retailers will raise their prices on local markets to compensate for their losses. The crunch will be felt in African pots and pans and gas tanks. The poor African populations will only keep enduring, powerlessly.
This explains why the Emerging Giant Economies of Africa are scheming Currency break away from Euro and Dollar to avoid the economic exploitation of the Western Countries.
South-Africa is reportedly backing plans for a single currency unit within the exclusive Brics grouping that the emerging giants could use to trade among them and circumvent the need for euro and dollar conversions.
The focal point is the question of conducting trade between member countries in such a way that does not require recourse to third-country currency and to convertible currencies like the dollar and euro, which are incredibly volatile these days.
Although creating a single currency would be a complicated ‘long-term ambition’, Davies revealed that an interim ‘clearing-out arrangement’ would be negotiated so that the Brics countries would not have to use dollars or euros to trade. 

10 comments:

Aurelien Tekou said...

People like venturing into fields which are not theirs and on which they have no idea just because they want to express their stupid emotions. There will be no devaluation of the CFA Franc. It is the wish of some individuals because they want to see blood flowing in our countries. Their dreams will never come true.

Evina Kévin said...

Do not consider Cameroon in such cases as an independent entity, we belong to a world where the powers of the world are suffering from economic crackdown and the developing countries which depend on these powers will likely suffer from this pestilence. However, there will be devaluation of the CFA francs as announced by the Bank of Central African States.

Ebwellé Hortense said...

We belong to a world which is suffering from a general economic earthquake that started in major economies of the world and it is obvious that Africa must suffer the consequences at some degree as the earthquake will spread.
You talk here as if the devaluation of the CFA franc is the fault of Cameroon or the other countries using this economy. If you want to count on this issue to expect Cameroonians to take the streets then you are wasting your time. Cameroonians are informed and they know the economic crisis is a pandemic and not the issue of a single country.

Kamdem Pascal said...

If you think the devaluation of the CFA francs will affect only Cameroon you are fooling yourself. The world is undergoing a violent economic earthquake and Cameroon is not on some other planet.
No victory was stolen in Cameroon, President Paul Biya won the Presidential elections with the massive support of Cameroonians. If you do to want to admit his victory then it is your problem.

Hervé toupa said...

The devaluation of the CFA Franc will not affect Cameroon alone but several countries. Cameroon belongs to a world that is suffering from a general economic maramus and cannot fully escape from some ulcers. There will be no devaluation of the CFA Franc as you wish because you want to see blood spill in our country and fire causing ravage. The governor of the Central African States Bank gave a press conference to reassure the various members of the Central African Community that there will be no devaluation.

Aurelien Tekou said...

As speculated and rumored by many, so far there has been no devaluation of the CFA Franc and the governor of the Bank of Central African States gave a press conference reassuring all member countries that there will be no such event.

Talla Jean said...

There is nothing more to say about this rumour on the devaluation of the CFA Franc. It is now clear, there will be no devaluation. The governor of the Bank of Central African States gave a press conference reassuring all member countries.
There people who find interest in such a thing happening but once more will be disappointed.

Louisette Afane said...

Your hopes were watered down by the announcement made by the governor of the Bank of Central African States, who was clear on the issue of a possible devaluation of the CFA Franc; there will be no devaluation.Prophets of doom are disappointed once more and let them know, they will not be allowed to constitute and obstacle to the implementation of the major accomplishment project.

Ateba Hugues said...

It is now clear, there will be no devaluation of the CFA Franc, those who have specialized in predicting the end of Cameroon should look for something better doing.

Bitoto Lucien said...

It is known by all that the governor of the Bank of Central African States held a press conference and announced that the Franc CFA will not suffer any devaluation and therefore watering down the hopes of some individuals who want to see Cameroon down because they expected uprisings and chaos in the country in case of devaluation.