Money creation is often blamed for generating inflation, especially in developing countries. In principle, the risk of inflation does not exist so long as credit is allocated to productive investments that aim to increase the local productive capacity and reduce the under-utilisation of the workforce. Empirical studies have shown that episodes of high credit growth have rarely led to high inflation; or rather, that inflationary episodes have rarely been preceded by an increase in the money supply. … Many African countries import large quantities of food products, which take up a large amount of their foreign reserves. But they could take steps to produce locally the food that they need: land, work and know-how are generally available. What is missing, more often than not, is the financial means to develop their agricultural systems, as well as trade protection against foreign imports. If they financed the development of their agriculture, they wouldn’t reduce their foreign exchange reserves; on the contrary, they would save money!

Fanny Pigeaud_ Ndongo Samba Sylla, Africa's Last Colonial Curr…, loc. 145