Citigroup’s chief economist has urged the monetary union that uses the CFA franc to contemplate a devaluation of the currency, which remains fixed to the euro. The recommendation comes as member states grapple with slowing growth and dwindling foreign‑exchange reserves, prompting policymakers to reassess the peg’s rigidity in the current fiscal cycle.

A weaker CFA franc could make exports from the eight Central African countries more price‑competitive, potentially reviving sectors such as timber, mining and agriculture that have suffered from high euro‑linked costs. By widening the trade margin, the devaluation aims to stimulate private investment and narrow the current account deficit significantly.

Critics warn that a devaluation could also raise inflationary pressure, eroding real wages and increasing the cost of imported goods, including fuel and food. With the CFA franc’s stability historically tied to France’s treasury guarantees, any move away from the Euro peg may trigger political friction within the franc‑zone governance structure.

Investors monitoring the region will watch for official signals from the Economic and Monetary Community of Central Africa (CEMAC). A policy shift could reshape currency risk premiums, affect sovereign bond yields and alter the valuation of companies reliant on cross‑border trade. For now, Citigroup’s call adds pressure on policymakers to justify the status quo.