The BEAC franc zone encompasses six member states — Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon — whose common currency has been pegged to the euro at a fixed rate since 1999, and before that to the French franc at a rate unchanged since 1948. That peg is guaranteed by the French Treasury, which requires member states to deposit half their foreign exchange reserves in Paris. The political friction that arrangement generates is considerable, and periodically erupts into formal calls for monetary reform.
The BEAC franc zone encompasses six member states — Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon — whose common currency has been pegged to the euro at a fixed rate since 1999, and before that to the French franc at a rate unchanged since 1948. That peg is guaranteed by the French Treasury, which requires member states to deposit half their foreign exchange reserves in Paris. The political friction that arrangement generates is considerable, and periodically erupts into formal calls for monetary reform.