The impact of the CFA devaluation on cereal markets in selected CMA/WCA member countries

The study carried out on behalf of the Conference of Ministers of Agriculture of West and Central Africa represents one of the first attempts to analyze the impact of the devaluation of the CFA Franc that took place in early 1994. Its main focus is on the impact the change in parity has had on the cereal sectors of the region, keeping in mind the limited time the economies have had to adjust to the changes. The study is based on data from selected countries, including Niger, Burkina Faso, Côte d'Ivoire, Ghana, Mali, and Senegal. The assessment of the impact of the devaluation of the CFA Franc in early 1994 on the cereal sector starts with the analysis of the historical relationships between cereal prices and the exchange rate in selected West Africa countries. In addition, a model examining the transmission of the changes in the value of the CFA franc to producer prices is developed and estimated, in order to gain more insight on the role of different factors in determining the level of transmission. In the subsequent parts of the study, a comparative analysis of the impact across cereal sectors and individual countries is carried out.