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Cameroon – Finances: Chad and Equatorial Guinea oblige Beac to adjust its external monetary policy

Written by Deckson N.

The Committee on Monetary Policy (Comité de politique monétaire – CPM) during the meeting of May 22, 2017 in Yaoundé adopted measures to further consolidate the external sustainability of the currency in the Cemac zone.

To this end, the Governor of Beac, Abbas Mahamat Tolli, who chaired the Committee, declared that it was decided to reduce the refinancing targets of two Cemac countries by 20%.

While Mahamat Tolli did not cite the Cemac countries that provoke this measure, it is nevertheless known that Chad and Equatorial Guinea are showing poor financial performance. Because of the CFA 1155.95 billion in 2016 in the account of operations, the central services of Beac have in this account 513.3 billion FCFA. Cameroon, 443.6 billion. The Central African Republic, 39.52 billion. The Congo, 124.06 billion. Gabon, 106 billion. Equatorial Guinea, minus 7.8 billion. And Chad, minus 63.07 billion.

As a reminder, the “operations account” is the one opened by Beac to the budgetary control and accounting department of the French Ministry of Finance and Public Accounts. The Central Bank, according to its conventions, must imperatively deposit 50% of its external assets. However, the agreement of 3 October 2014 stipulates that this percentage may be reduced to less than 50% but not less than 40%.

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Deckson N.