Why conversion is necessary
US stocks are priced and traded in US dollars. When you deposit XAF via Mobile Money, those funds must be converted to USD before buying any shares. When you withdraw, your USD holdings are converted back to XAF.
The Central African Franc (XAF) is pegged to the Euro at a fixed rate of 655.957 XAF per EUR. Against the USD, the rate fluctuates daily with global currency markets. As of early 2026, 1 USD ≈ 600–640 XAF.
How Amarah calculates the rate
Amarah uses the Bloomberg mid-market rate — the midpoint between the buy and sell rates in the institutional foreign exchange market — as the basis for conversion. This is the most transparent, independently verifiable rate available.
To this base rate, Amarah adds a 1% conversion margin. This covers the cost of moving funds between the CFA franc system and the USD banking system. You see the exact rate and margin before confirming any transaction.
A worked example
Let's say you deposit 50,000 XAF when the Bloomberg rate is 625 XAF per USD:
- 50,000 XAF ÷ 625 = 80.00 USD at the mid-market rate
- Minus 1% conversion margin: 80.00 × 0.01 = 0.80 USD
- You receive: 79.20 USD in your Amarah account
- Trade commission (500 XAF ≈ 0.80 USD) is deducted when you place a buy order
The conversion on withdrawal
When withdrawing, the process reverses. Suppose your account has 80 USD and you want to withdraw everything:
80 USD × current rate (e.g. 625) = 50,000 XAF, minus 1% margin = 49,500 XAF, minus 500 XAF withdrawal fee = 49,000 XAF sent to your MoMo wallet.
Currency risk: what to know
Because your investments are held in USD, the XAF value of your portfolio fluctuates with the XAF/USD exchange rate even if your stocks don't move. If the USD strengthens against XAF, your portfolio gains more in XAF terms. If the USD weakens, it loses some value in XAF terms.
Historically, the USD has been a strong store of value relative to many African currencies. However, this is not guaranteed and should be considered part of your overall investment risk.
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