I really hope they go ahead with this. It will give us a live experiment in foolishness.
Of all the problems with French colonialism - and there are many - keeping half your reserves with the French central bank in exchange for GUARANTEED supply of Forex is not something you can call a problem by ANY definition of the word
By definition, foreign reserves are going to be held abroad. The difference is that Nigeria holding itself foreign reserves in the US gets it nothing in return. France does not make any money from holding those reserves. It’s a cost.
But I pray they go ahead with it. I will happily welcome them to the world of high inflation, regular 100% devaluations, forex scarcity among many other goodies countries like Nigeria have been ‘enjoying’ for years
Shey e le stewpid ni
By the way, ask me how much the reserves these countries are making noise about is. Just ask me.
As at Dec 2017, the combined reserves of Guinea Bissau, Senegal, Mali, Ivory Coast, Togo, Niger, Cameroun, Burkina Faso and Benin held by France came to a staggering €5bn
Oshi!
As at Dec 2017, the combined reserves of Guinea Bissau, Senegal, Mali, Ivory Coast, Togo, Niger, Cameroun, Burkina Faso and Benin held by France came to a staggering €5bn
Oshi!
Please they should collect the €5bn and bring it ‘local’ let Meffy help them guarantee it. He will give them good price.
(To be fair though, some things in life are not about money. They might want to do this just for psychological reasons and that’s fine. But the amount in question is just not a big deal to make it out to be some kind of silver bullet)
