Aftermath of the CFA Franc Devaluation

Stéphane Cossé, Johannes Mueller, Jean Le Dem, and Jean Clément

• Publisher: INTERNATIONAL MONETARY FUND
• eBook ISBN:
  9781557755612
• Year: 1996

NONE

Contents

Preface

I Introduction and Background

II Modified Adjustment Strategy

Policy Framework

Medium-Term Objectives

Fund-Supported Programs, Creditors, and Donors

III Adjustment Experience

Overall Performance in 1994

Policies Supporting the Exchange Rate Adjustment

Wage and Labor Policies

Fiscal Developments and Policy

Monetary Developments and Policy

Structural Reforms

Social Policies

IV Challenges Ahead

Fiscal Policy

Improving Government Revenue Performance

Expenditure Restraint and Management

Monetary and Credit Policy

Financial and Banking Reforms

Structural Policies

Social Policies

External Debt Management

V Conclusions

Annexes

I Statistical Tables

II Economic Integration Within the Two Unions of the CFA Franc Zone

III Monetary Policy and Banking Supervision in the Two Unions of the CFA Franc Zone

IV Fund Technical Assistance in CFA Franc Countries

V World Bank Group Technical Assistance in CFA Franc Countries

References

Box

1. CFA Franc Zone: A Profile

Tables

Section

I 1. Economic and Financial Indicators for CFA Franc and Non-CFA Franc Sub-Saharan African Countries, 1975–93

III 2. Selected Economic and Financial Indicators, 1990–96

Annex

I

3. Nominal GDP, 1991–96

4. Real Rate of Growth, 1990–96

5. GDP Deflator, 1990–96

6. Inflation (CPI), 1990–96

7. Cumulative Consumer Price Index, 1994 and 1995 (January-June)

8. Total Consumption, 1990–96

9. Total Gross Domestic Investment, 1990–96

10. Gross Public Investment, 1990–96

11. Total Private Investment, 1990–96

12. Gross Domestic Savings, 1990–96

13. Government Domestic Savings, 1990–96

14. Private Domestic Savings, 1990–96

15. Gross National Savings, 1990–96

16. Resource Balance, 1990–96

17. Exports Value (f.o.b.), 1991–96

18. Exports—Volume, 1991–96

19. Imports Value (f.o.b.), 1991–96

20. Imports—Volume, 1991–96

21. Trade Balance, 1990–96

22. Intra-CFA Franc Zone Trade, in 1990–93 and 1994

23. External Current Account Excluding Official Transfers, 1990–96

24. External Current Account Including Official Transfers, 1990–96

25. Terms of Trade, 1990–96

26. Nominal and Real Effective Exchange Rates, 1991–94

27. Stock of External Public Debt at End of 1994

28. Recent Paris Club Debt Reschedulings for the CFA Franc Countries

29. Total Scheduled Public Debt Service, 1990–96

30. Total Scheduled External Public Debt Service, 1990–96

31. Total Government Revenue, 1990–96

32. Total Government Tax Revenue, 1990–96

33. Domestic Tax Revenue, 1990–96

34. Tax on International Trade, 1990–96

35. Total Government Expenditure, 1990–96

36. Basic Primary Expenditure, 1990–96

37. Government Wage Bill, 1990–96

38. Government Wage Bill, 1991–96)

39. Adjustments in Civil Service Wage Bill, 1993–95

40. Government Investment Expenditure, 1990–96

41. Public Investment Financed by Internal Resources, 1990–96

42. Basic Primary Balance, 1990–96

43. Overall Fiscal Balance, 1990–96

44. Monetary Survey, 1993

45. Monetary Survey, 1994

46. Interest Rate Structure, 1989–95

47. Sources of Exceptional Financial Assistance, 1993–94

48. Exceptional Financial Assistance by Recipient Country, 1993–94

49. Project Aid by Recipient Country, 1993–94

50. Official Debt Relief by Recipient Country, 1993–94

51. Disbursements from the Fund, 1994–95

52. Official Producer Prices for Main Export Crops by Country, 1993–95

53. Selected Demographic and Social Indicators

II

54. Summary of Economic Integration Initiatives/Results in the CFA Franc Zone

55. Harmonization of Customs Duties and Indirect Taxes in the CFA Franc Zone

56. Economic Integration Projects at the CFA Franc Zone Level

III

57. Status of Monetary Reforms in the Two Unions of the CFA Franc Zone

58. Banking Supervision in the Two Unions of the CFA Franc Zone

IV

59. Fund Technical Assistance in CFA Franc Countries, 1989–95

Charts

Section

III

1. Economic and Financial Indicators, 1990–96

2. Quarterly Increases in Consumer Prices, 1994-March 1995

3. Real Effective Exchange Rate and Terms of Trade, 1980–94

4. WAEMU: Decomposition of Trade Balance Variations, 1993–94

5. CAEMC: Decomposition of Trade Balance Variations, 1993–94

6. External Public Debt at End of 1994

7. WAEMU: Monetary Survey, 1994

8. CAEMC: Monetary Survey, 1994

Annex I Statistical Tables

Annex II Economic Integration Within the Two Unions of the CFA Franc Zone

Annex III Monetary Policy and Banking Supervision in the Two Unions of the CFA Franc Zone

Annex IV Fund Technical Assistance to CFA Franc Countries

Annex V World Bank Group Technical Assistance to CFA Franc Countries

Since fiscal year 1990, the World Bank Group has provided support for improving economic management under the following technical assistance operations (to September 1995).

Benin

The fiscal year 1995 Economic Management Project (US$6.0 million equivalent) focuses on investment programming, budgeting, national accounts and procurement policies. In the context of the project, the Ministry of Planning will be reorga...

Table of contents

• Cover Page
• Title Page
• Copyright Page
• Contents
• I Introduction and Background
• II Modified Adjustment Strategy
• III Adjustment Experience
• IV Challenges Ahead
• V Conclusions
• Annexes
• Footnotes