The EUR to XOF exchange rate is currently range-bound, reflecting recent stability in both currencies.
Key drivers include the European Central Bank's (ECB) decision to maintain interest rates, coupled with cautious remarks about the euro's strength potentially impacting inflation. In contrast, the West African CFA Franc (XOF) is facing pressure due to political changes, particularly the withdrawal of certain countries from the Economic Community of West African States and plans for a new currency by the Alliance of Sahel States. Additionally, the eurozone's projected economic growth of 1.6% for 2026 may provide support for the euro.
In the near term, the EUR/XOF exchange is expected to fluctuate within its three-month average, which currently sits at 656. Upside risks include a rebound in the euro due to improved economic data from Germany. Conversely, a downgrade in the region's political stability or shifts in oil prices could negatively impact the XOF, further complicating the exchange rate dynamics.