25 Francs CFA – Central African States

In 1970, the currency situation in the Central African States was defined by the newly established Central African CFA franc (XAF), which had come into existence just a decade earlier. This currency was created in 1959 as the franc of the Communauté Financière Africaine for the newly independent former French colonies of the region: Chad, the Central African Republic, the Congo (Brazzaville), and Gabon (with Cameroon joining shortly after). The key feature of this monetary system was its fixed parity and guaranteed convertibility, as the CFA franc was pegged to the French franc at a rate of 1 French franc = 50 CFA francs. This arrangement provided monetary stability and facilitated trade with France, but it also meant that monetary policy was effectively outsourced, with the issuing bank, the Banque Centrale des États de l'Afrique Équatoriale et du Cameroun (BCEAEC), operating under strict rules regarding foreign exchange reserves held in the French Treasury.

The year 1970 fell within a period of relative stability for the currency, but it was also a time of underlying political and economic tension regarding sovereignty. The fixed peg, while ensuring low inflation and access to hard currency, limited the member states' ability to use devaluation as a tool to boost competitiveness. Furthermore, the system required the pooling of foreign reserves, which led to disputes among members with differing economic fortunes—notably between oil-rich Gabon and the poorer, landlocked nations like Chad and the Central African Republic. The institutional framework itself was in a state of evolution, as the BCEAEC was soon to be replaced in 1973 by the Banque des États de l'Afrique Centrale (BEAC), reflecting a desire for greater regional management, though the essential guarantee from France remained.

Thus, the currency situation in 1970 was one of a stable but externally anchored monetary union. It provided a crucial framework for these young nations, shielding them from the volatility experienced by some of their neighbors, but it also embedded a enduring economic dependency on France. The system fostered regional integration among the member states, yet the debates over monetary sovereignty and equitable benefits that began in this era would continue for decades to come.