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Saturday, November 23, 2019

Yaounde: CEMAC showed commitment to stability of currency CFA France in Cameroon

Heads of State of Cemac showed their commitment to a stable currency, at the end of the meeting in Cameroon they had on November 22, 2019, during an extraordinary summit in Yaoundé, the Cameroonian capital . A choice that does not surprise. In his opening address, Paul Biya, the host of the event, said that a monetary adjustment was not on the agenda, in view of the improvement of the external position, in terms of months of imports.

On the other hand, the leaders of the subregion have paved the way for "possible developments", politics and monetary cooperation. Once again, the Beac was given the task of working on these two levers and making proposals as soon as possible. In terms of monetary policy, the Beac is already on this site and should report back on this issue fairly quickly.

These include actions to strengthen the stability of the banking sector, but also the management of the refinancing of securities issued by non-financial companies in the private sector. The novelty, on the other hand, is that CEMAC has declared itself open to starting discussions with a view to changing the monetary cooperation agreements that link the subregion with the euro and France. On this last point, it is difficult to know what were the points of arbitration between the presidents of CEMAC. 

On the other files, CEMAC seems to want to bring a dose of realism in achieving the objectives of fiscal consolidation. It is not excluded that countries whose economic programs with the IMF have come to term may proceed with renewals. These resolutions come, it should be remembered, in a context of uncertainty on the world economy and growth forecasts below 3% for CEMAC. 

Idriss Linen

Published by News Invest In Cameroon