Euro: exchange rate and convertibility of the CFA and the Comorian franc

PURPOSE : Adoption of a Recommendation for a Council Decision concerning exchange rate matters relating to the CFA franc and the Comorian franc. CONTENT : From 1 January 1999, the Community will have the exclusive competence for monetary and exchange rate matters in the Member States adopting the euro. Any agreement with third countries concerning monetary or foreign exchange rate matters needs to reflect this allocation of competence. This proposal for a draft Council Decision would allow France to maintain the present agreements that it has concerning exchange rate matters relating to the CFA franc and the Comorian franc. Such agreements are seen to have complemented the Community's development policy by enhancing regional co-operation and growth through deeper economic interdependency and solidarity.�