The CFA franc-pegged to the euro at CFAfr655.96:EUR1-will fluctuate against the US dollar in line with the euro:dollar exchange rate. The dollar strengthened against the euro in 2010, spurred by the sovereign debt crisis in the euro area, and we expect this trend to continue throughout the forecast period as the US economy recovers from recession more quickly than the euro area and investors seek safety in the US currency. In line with these trends, the CFA franc is forecast to depreciate against the US dollar, from CFAfr495:US$1 in 2010 to CFAfr502:US$1 in 2011 and CFAfr525:US$1 in 2012.