For more than a half century, a dozen African countries pegged their currency, the CFA franc, to

Question:

For more than a half century, a dozen African countries pegged their currency, the CFA franc, to the French franc. Many analysts felt that central bank intervention caused the CFA franc to become overvalued by approximately 50%.
a. Exchange rates are set by the forces of supply and demand. What did the analysts mean when they said that the CFA franc was "overvalued"?
b. What impact did intervention by the CFA central bank have on the CFA zone's monetary base, real risk-free interest rate, nominal interest rates, GDP Price Index, nominal and real GDP, current international transactions balance, and reserve assets?