Tuesday, January 7, 2020

End of FCFA: BEAC governor resist to follow ECOWAS

The governor of Beac believes that we should not necessarily follow in the footsteps of West Africa, even if he has been instructed by the heads of state of the Cemac sub-region to initiate discussions in this area. meaning.

The extraordinary summit of heads of state and government of the Economic and Monetary Community of Central Africa (Cemac), held in Yaoundé in November 2019, set the tone for the new monetary orientation envisaged by the leaders. The final communiqué of this summit indicated "the will of the Heads of State and of governments to have a common, stable and strong currency". In the same vein, and concerning monetary cooperation with France on the CFA Franc, the Heads of State and Government had consequently instructed the Bank of Central African States (Beac), under the supervision of the Monetary Union Central Africa (Umac), to propose within an appropriate time an appropriate scheme leading to the development of the common currency. 

The announcement of the abandonment of the FCFA by 8 states of Uemoa (West African Monetary and Economic Union) caused a jolt in the Cemac zone. Although fully informed of the monetary situation in West Africa, the leaders of Central Africa are now planning to speed up the process of reforms undertaken in the sub-region. On a working visit to Douala, on December 18, the governor of Beac spoke on the subject, questioned by the EcoMatin team. Asked what was Beac's position on the exit dynamics of the Fcfa initiated by West Africa, Abbas Mahamat Tolli was formal: “ECOWAS is in a vision of extending its area. We do not have the same economic and financial realities. Central Africa is not in a dynamic of extension. Cemac will discuss the evolution of its monetary framework when the time comes. ” And the governor of the Central Bank added: "we are not going to mimic West Africa."

With the acceleration of the process of exit from the FCFA by the West African states, the CEMAC zone is almost obliged to follow the train of monetary reform. From informal sources, high-level negotiations are underway between Cemac and France on the issue. They also announce the imminent arrival of a large French delegation in Cameroon, the locomotive of Central Africa. Delegation led by Jean Yves Le Drian, Minister for Europe and Foreign Affairs. The French plenipotentiary would come to prepare the visit of Emmanuel Macron, in the perspective of an important announcement modeled on that of December 21, 2019 in Abidjan.

Source: ecomatin.net