XOF is the currency code for the West African CFA franc. It represents the official currency unit used in eight West African countries, namely Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
The XOF abbreviation stands for "X" denoting the term "currency" and "OF" representing "Financial Organization." The West African CFA franc is governed by The Banque Centrale des États de l'Afrique de l'Ouest (BCEAO), which acts as the central bank for the aforementioned countries.
The CFA franc is a stable currency and is pegged to the euro at a fixed exchange rate. It is further subdivided into smaller units known as centimes. One West African CFA franc is equivalent to 100 centimes.
The XOF currency is widely used for all kinds of financial transactions within the region, including trade, commerce, and investment activities. Additionally, it serves as the legal tender for these eight countries.
Due to its fixed exchange rate with the euro, the XOF provides economic stability in the region, allowing for smooth cross-border trade and investment opportunities. The BCEAO regulates the supply of XOF in circulation to maintain its value, thereby ensuring monetary stability for the countries using the currency.
Overall, the XOF, or West African CFA franc, plays a vital role in the economic development and financial activities of the West African countries it is utilized in.
