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Foreign exchange reserves issue still haunting CEMAC

APAnews | The Board of Directors of the Bank of Central African States (BEAC) has taken note of the regional bank’s commitment to “apply a properly calibrated monetary policy aimed mainly at restoring a satisfactory level of foreign exchange reserves.”

In a statement seen by APA on Thursday, following its session on June 24, 2019, the Board urged the Central Bank to continue the implementation of liquidity management mechanisms, with the dual objective of improving the transmission of the monetary policy and preventing inflationary pressures.

At the same time, the Board of Directors encouraged the banking supervisory body to research and apply practical solutions to speed up the resolution process of banks in trouble.

In the Economic and Monetary Community of Central Africa (CEMAC), monetary policy, considered expansionist by specialists, was translated a few years ago by an economic shock coupled with a rise in state spending.

The foreign exchange reserves of the zone thus fell, according to consistent data, from US$15.5 billion in December 2014 to US$4.9 billion at the end of 2016, barely covering 2.3 months of imports.

In order to curb deficits, the fall of which, since 2014, commodity prices is also one of the causes, the International Monetary Fund (IMF) has concluded three-year economic reform programs with Cameroon, Gabon and the Central African Republic, while the Congo and Equatorial Guinea still seem to be dragging their feet.

The extraordinary summit of CEMAC Heads of State, held in December 2016 in Yaoundé, Cameroon had among other things, prescribed the raising of the central bank’s key interest rate, strengthening banking supervision, restricting bank refinancing with government securities as collateral, but also modernize liquidity management.

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8 comments

  1. the problem of lack of foriegn reserves in any country is prove,it does not have solid industrialist to produce,export and draw in hard currency.this mean oppotunities for export exist withen the country,they just need to be organised and exploited by intelligent ,highly strategic captains of industry who take a strategic view in everything.
    it is quite simple to build an export oriented system of industrilisation.but you need commited people who understand that the economy is war.this enables them craft the right strategies in oder to use the countries comparative advantage properly.for example the constant sun we have is a comparative advantage in economic terms.while i can make four harvest of corn or other cereals a year.my french or canadian competitor can only make one.

  2. from the reasoning above we aught to be a grain exporting continent,if we were to use our comparative advantage.canada for example export grain and other agriculture products to china for more than seven billion dollars a year.america exports soya beans for more than 12 billion.with the current conflict between china and america.we can step in,fill this gap and also take the money which is foriegn currency!

  3. Finally the Swiss are about to freeze the assets of the criminal central African dictator Paul Biya in power since 1982 and ruling his reclusive enclave from hotel continental. What a great stride BAS! Kudos to you all. Rigging elections is truly a vision-less criminal act that can land these puppets in hot water. Could have been taking a good rest now in his retirement home.

  4. Time for a Biya must go campaign.

  5. All this problems of a poor economy, a declining or depleting foreign reserves, compounded by an unstable political environment, one would think that President of the Republic would working overtime to brings things back to balance or to normalcy. Unfortunately

  6. According to an NGO specializing in the fight against corruption, the Cameroonian head of state has already passed, since his election 37 years ago, more than 4 years and a half abroad, a good part to very chic Intercontinental hotel in Geneva where he would have his habits. The same NGO estimates the cost of a single night at the hotel for the president and his entourage at $ 40,000.
    An expenditure of public money deemed scandalous for the opponents of Paul Biya, who came to grips last week with the bodyguards of the Cameroonian president. A Swiss journalist was even assaulted. Six members of Paul Biya’s security service have since been sentenced to suspended sentences.
    But the discomfort remains. Bern called Cameroonian representation to order.

  7. I understood two of the accused of non self defensive,physical, aggression , held diplomatic passports.Anyone in diplomatic service and on duty should immediately have their diplomatic passports revoked until the local authorities of the hosting country concludes.Its not a diplomatic action to be physical.your supposed to be on an intellectual higher level when interacting with people.Considering many disporians have worked at some point in the security industry with excellent skills and famous for tranquil performance the remaining non diplomatic ones should be sacked, if guilty.

    • Epée Dipanda

      It is ok to write in French when your English is sketchy.
      Whether Biya goes or not really shouldnt matter west of the Mungo.
      We are a free people afterall

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