98/683/EC: Council Decision of 23 November 1998 concerning exchange rate matters relating to the CFA Franc and the Comorian Franc
Date: 1998-11-23
Institutions: Council of the European Union
Subjects: Economic and Monetary Union, European Central Bank, France, exchange rate, national currency, single market

L 320/58

EN

Official Journal of the European Communities

28. 11. 98

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 23 November 1998

concerning exchange rate matters relating to the CFA Franc and the Comorian
Franc

(98/683/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 109(3) thereof,

Having regard to the recommendation from the Commis-
sion,

Having regard to the opinion of the European Central
Bank (1),

(1) Whereas according to Council Regulation (EC) No
974/98 of 3 May 1998 on the introduction of the
the euro will be substituted as from 1
euro (2),
January 1999 for the currency of each participating
Member State at the conversion rate;

(2) Whereas the Community will have the competence
for monetary and exchange rate matters in the
Member States adopting the euro as from the same
date;

(3) Whereas the Council is to determine the appro-
priate arrangements for the negotiation and conclu-
sion of agreements concerning monetary or foreign
exchange regime matters;

(4) Whereas France has concluded several agreements
with the UEMOA (Union (cid:130)conomique et mon(cid:130)t-
aire ouest-africaine),
the CEMAC (Communaut(cid:130)
(cid:130)conomique et mon(cid:130)taire de l’Afrique Centrale)

(1) Opinion of 23 September 1998 (not yet published in the Offi-

cial Journal).

(2) OJ L 139, 11. 5. 1998, p. 1.

and the Comores which are intended to guarantee
the convertibility of the CFA and Comorian francs
into the French franc at a fixed parity (3);

(5) Whereas the euro will be substituted for the French

franc on 1 January 1999;

(6) Whereas

the

the CFA and
convertibility of
Comorian francs is guaranteed by a budgetary
commitment of the French authorities; whereas the
French authorities have given the assurance that
the agreements with the UEMOA, the CEMAC and
with the Comores have no substantial
financial
implications for France;

(7) Whereas these agreements are unlikely to have any
material effect on the monetary and exchange rate
policy of the euro area; whereas in their present
form and state of implementation these agreements
are therefore unlikely to present any obstacle to a

(3) Convention de coop(cid:130)ration mon(cid:130)taire du 23 novembre 1972
entre les (cid:144)tats membres de la Banque des (cid:144)tats de l’Afrique
centrale (BEAC) et
la R(cid:130)publique fran(cid:135)aise, as amended;
Convention de compte d’op(cid:130)rations du 13 mars 1973 entre le
ministre de l’(cid:144)conomie et des Finances de la R(cid:130)publique
Fran(cid:135)aise et le Pr(cid:130)sident du Conseil de l’administration de la
Banque des (cid:144)tats de l’Afrique Centrale, as amended; Accord
de coop(cid:130)ration du 4 d(cid:130)cembre 1973 entre la R(cid:130)publique fran-
(cid:135)aise et les R(cid:130)publiques membres de l’union mon(cid:130)taire ouest-
africaine, as amended; Convention de compte d’op(cid:130)rations du
4 d(cid:130)cembre 1973 entre le ministre de l’(cid:144)conomie et des
Finances de la R(cid:130)publique Fran(cid:135)aise et le Pr(cid:130)sident du conseil
des ministres
as
l’Union mon(cid:130)taire
amended; Accord de coop(cid:130)ration mon(cid:130)taire du 23 novembre
1979 entre la R(cid:130)publique fran(cid:135)aise et la R(cid:130)publique f(cid:130)d(cid:130)rale
islamique des Comores, as amended; Convention de compte
d’op(cid:130)rations du 23 novembre 1979 entre le ministre de
l’(cid:144)conomie et des Finances de la R(cid:130)publique Fran(cid:135)aise et le
ministre des Finances, de l’(cid:144)conomie et du Plan de la R(cid:130)-
publique f(cid:130)d(cid:130)rale des Comores, as amended.

ouest-africaine,

de

28. 11. 98

EN

Official Journal of the European Communities

L 320/59

smooth functioning of economic and monetary
union; whereas nothing in these agreements can be
construed as implying an obligation for the Euro-
pean Central Bank or any national central bank to
support the convertibility of the CFA or Comorian
franc; whereas modifications to the existing agree-
ments will not lead to any obligations for the Euro-
pean Central or any national central bank;

(8) Whereas France and the African signatories to the
agreements are willing to continue the present
agreements after the substitution of the euro for the
French franc; whereas it is appropriate that France
may continue the present agreements after the
substitution of the euro for the French franc and
that France and the African signatories to the
agreements
sole
responsibility;

them under

implement

their

(9) Whereas it is necessary for the Community to be
informed on a regular basis about the implementa-
tion and envisaged modifications of
the agree-
ments;

(10) Whereas the modification or implementation of
existing agreements will be without prejudice to
the primary
the Community’s
exchange-rate policy to maintain price stability, in
accordance with Article 3a(2) of the Treaty;

objective

of

(11) Whereas it is necessary to involve the competent
Community bodies before making any changes to
the present agreements;
the nature or scope of
whereas this applies to the membership of
the
agreements and to the principle of free convert-
ibility at a fixed parity between the euro and the
CFA and Comorian francs, convertibility being
guaranteed by a budgetary commitment of
the
French Treasury;

(12) Whereas the decision does not establish a pre-
cedent with respect to any arrangements that may
be decided in the future with respect to the nego-
tiation and conclusion of
agreements
concerning monetary or foreign exchange regime
matters by the Community with other States or
international organisations;

similar

(13) Whereas, without

prejudice

to Community
competence and Community agreements as regards
economic and monetary union, Member States may
negotiate in international bodies and conclude
international agreements,

et mon(cid:130)taire

the CEMAC
mique
(Communaut(cid:130) (cid:130)conomique et mon(cid:130)taire de l’Afrique
Centrale) and the Comores.

ouest-africaine),

Article 2

France and the African signatories to the agreements shall
retain sole responsibility for the implementation of these
agreements.

Article 3

competent French authorities

shall keep the
The
Commission,
the European Central Bank and the
Economic and Financial Committee informed on a
regular basis about the implementation of the agreements.
The French authorities shall inform the Economic and
the parity
Financial Committee prior
between the euro and the CFA or Comorian franc.

to changes of

Article 4

France may negotiate and conclude modifications to the
present agreements to the extent that the nature or scope
of the agreements are not changed. It shall inform in
advance the Commission, the European Central Bank and
the Economic and Financial Committee of such changes.

Article 5

Any plans to change the nature or scope of these agree-
ments shall be submitted by France to the Commission,
the European Central Bank and the Economic and Finan-
cial Committee. Such plans require the approval of the
Council on the basis of a recommendation from the
Commission and after consultation of
the European
Central Bank.

Article 6

This Decision shall apply as from 1 January 1999.

Article 7

This Decision is addressed to the French Republic.

HAS ADOPTED THIS DECISION:

Done at Brussels, 23 November 1998.

Article 1

Upon the substitution of the euro for the French franc,
France may continue its present agreements concerning
exchange rate matters with the UEMOA (Union (cid:130)cono-

For the Council

The President

R. EDLINGER