After spending about a week here in Senegal, I'm extremely curious to learn what the on balance effect on the local economies the CFA being pegged to the Euro has. The positive aspects, I would think are :
* - the currency's value only fluctuates with the Euro, and not due to local economic conditions
* - the governments are unable to devalue their currencies themselves
* - eases trade with the Euro zone
.... etc.
Given the recent rise in the Euro, however, I think it would fairly negatively effect the region's exports to any non-Euro countries. So, given just the few things I've mentioned, I wonder if overall the peg is helpful or harmful to these individual economies.
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