A Bird Eye from COVID-19 Crisis on the Relevance of the CFA Franc Devaluation of January 1994 and the Honeymoon Effect: An Assessment with the Equilibrium Real Exchange Rate. Cases of Cameroonian, Gabonese and Central African Republic Economies

Abstract

The Relevance on policy orientation concerning currency have been assess in the past at the evening related to the cfa franc devaluation of January 1994 on Cameroon and Gabon. Once more it’s relatively means that despite the amount of debate on the peg into the cfa franc zone in particular with the devaluation of January 1994 this system of currency arrangement gives to his members states a lot of benefit as the honeymoon effect? In other words, in the currently context of COVID-19 what are the basis to assess on this issue? These are the main questions we are trying to answer, here. Globally speaking, considering the Results the Residual based approach of cointegration is an unvaluable engine to investigate on this kind of consideration about currency area. In fact, he have been able as well as to assess the effect of the peg on the currency arrangement but also to infer on the verifiability for the considering currency area of the honeymoon effect.