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.