XAF Market Update
31 Mar 2026 • 00:41 GMT
The Central African CFA franc (XAF) has fallen to 14-day lows against the US dollar near 0.001746, which is about 2.1% weaker than its three-month average of 0.001784. Interestingly, the rate has remained within a narrow trading range of 0.001740 to 0.001836 over the past few weeks, reflecting relative stability despite recent moves.
This softer tone against the dollar comes amid broader US dollar strength driven by geopolitical risks and rising oil prices, which continue to support the greenback. Meanwhile, recent policy actions from the Bank of Central African States (BEAC), including a rate hike to 4.75%, aim to stabilize the currency amid declining foreign reserves. Rumors of devaluation were firmly denied by BEAC, reinforcing confidence in CFA franc's stability.
Overall, while the XAF has depreciated slightly against the USD, it remains within a stable zone compared to other major currencies like the euro or Japanese yen. Traders should watch for geopolitical developments and central bank signals, which could influence future moves in the exchange rate.
