Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The regional strategy has helped to avert an immediate crisis but continues to face headwinds: two countries have yet to enter financing arrangements with the Fund: regional reserves have underperformed despite higher-than-projected oil prices; the projected recovery of non-oil growth has still to materialize; and the security, social, and political context remains challenging. Consistent with the policy assurances it had provided, the BEAC has taken corrective actions, including an increase in its policy rate, to address the NFA underperformance and has made substantial progress toward finalizing by end-year the modernization of the monetary policy operational framework and the drafting of new foreign exchange regulations. A follow-up letter of support provides updated policy assurances on the NFA path. The medium-term outlook continues to see a gradual improvement in the economic and financial situation but is subject to substantial downside risks, including further delays in the approval of financial arrangements with Congo and Equatorial Guinea, lower oil prices, and tighter global financial conditions. The region continues to face daunting challenges to diversify its economy, with a poor business environment and high perception of corruption.

Central Africa Economic and Monetary Community

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper examines common policies supporting reform programs in member countries of the Central African Economic and Monetary Community. The sharp decline in oil prices has profoundly impaired the region’s external and fiscal balances. Oil export proceeds and budget oil revenues have plummeted between 2014 and 2016. Several measures have been taken or are planned by the Bank of Central African States (BEAC) to support countries’ adjustment programs and help re-build reserves. BEAC has started to tighten the monetary policy stance with a first increase in its policy rate. The BEAC will also gradually eliminate its statutory advances to member countries, and will ensure implementation of strict limits aimed at restricting bank refinancing using government securities as collateral.

Banks and Banking --- Macroeconomics --- Money and Monetary Policy --- Public Finance --- Exports and Imports --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Fiscal Policy --- Debt --- Debt Management --- Sovereign Debt --- Trade: General --- Monetary economics --- Banking --- Public finance & taxation --- International economics --- Fiscal stance --- Monetary base --- Credit --- Public debt --- Fiscal policy --- Money --- Imports --- International trade --- Banks and banking --- Money supply --- Debts, Public --- Central Africa Economic and Monetary Community

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The regional strategy has helped stabilize the regional economic position thanks to large fiscal consolidation efforts, a tighter monetary policy, and external financial assistance. The external position improved, and external reserves picked up. However, the region remains dependent on oil revenues, with little progress in economic diversification, under-performing budget non-oil revenues and weaknesses in the financial sector. The policy assurances included in BEAC’s letter of December 2018 were implemented as planned and the CEMAC authorities reiterated their full commitment to the strategy and their readiness to implement additional corrective measures if needed. Progress was made towards new IMF-supported program in Congo and Equatorial Guinea.

Monetary policy. --- Monetary management --- Economic policy --- Currency boards --- Money supply --- Banks and Banking --- Finance: General --- Foreign Exchange --- Macroeconomics --- Public Finance --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Energy: Demand and Supply --- Prices --- Fiscal Policy --- Portfolio Choice --- Investment Decisions --- Debt --- Debt Management --- Sovereign Debt --- Banking --- Currency --- Foreign exchange --- Finance --- Public finance & taxation --- Oil prices --- Fiscal stance --- Foreign exchange regulations --- Liquidity --- Fiscal policy --- Asset and liability management --- Excess liquidity --- Public debt --- Banks and banking --- Economics --- Debts, Public --- Central Africa Economic and Monetary Community

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This Selected Issues paper looks at some Central African Economic and Monetary Community (CEMAC) specific regional dimensions of a possible strategy to enhance governance, which would support specific reforms in this area at the country level. The paper describes the specific dimensions of governance covered in the note. The paper also analyzes governance and corruption in the areas of public financial management, anti-money laundering, and the link between the oil sector and public resources. The CEMAC regional institutions will have to play a central role to lead progress in these areas, and support member countries’ own efforts. Due to such actions result in giving a coherent framework to actions conducted at the country level, the synergic dimension can spur a virtuous circle, key to earn the benefit of an economic and monetary union. The success of the regional strategy that CEMAC member countries and regional institutions are implementing to exit the severe crisis they are facing depends critically on creating the conditions for laying the ground for a diversified economy, within a well-functioning regional market and an environment that provides opportunities for all and where public resources are geared to most productive use.

Monetary policy. --- Monetary management --- Economic policy --- Currency boards --- Money supply --- Investments: Energy --- Exports and Imports --- Public Finance --- Taxation --- Criminology --- Taxation, Subsidies, and Revenue: General --- Business Taxes and Subsidies --- Illegal Behavior and the Enforcement of Law --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Bureaucracy --- Administrative Processes in Public Organizations --- Corruption --- Public finance & taxation --- Corporate crime --- white-collar crime --- Excise taxes --- Investment & securities --- International economics --- Revenue administration --- Anti-money laundering and combating the financing of terrorism (AML/CFT) --- Income and capital gains taxes --- Value-added tax --- Crime --- Taxes --- Revenue --- Money laundering --- Income tax --- Spendings tax --- Central Africa Economic and Monetary Community

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

While improving, CEMAC’s economic situation remains fragile. Growth picked up slightly but remains well below potential. Governments’ fiscal consolidation efforts, along with BEAC’s tighter monetary policy and stricter enforcement of foreign exchange regulations, have contributed to a significant reduction in the region’s fiscal and external imbalances. All CEMAC countries are committed to macroeconomic policies agreed with IMF staff to support the economic recovery and financial sustainability of each country and of the region. The regional central bank and banking supervisor continue to implement policies in support of the IMF-supported programs with CEMAC members. However, fiscal slippages in some countries contributed to the underperformance of international reserve accumulation in early 2018. Looking ahead, a further improvement in the economic and financial situation is projected, assuming full implementation of policy commitments by CEMAC member states and regional institutions. This outlook remains subject to substantial risks from possible weaker program implementation, lower oil prices, and insufficient external financing.

Banks and Banking --- Exports and Imports --- Foreign Exchange --- Macroeconomics --- Public Finance --- Money and Monetary Policy --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Fiscal Policy --- International Investment --- Long-term Capital Movements --- Energy: Demand and Supply --- Prices --- Debt --- Debt Management --- Sovereign Debt --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Banking --- International economics --- Currency --- Foreign exchange --- Public finance & taxation --- Monetary economics --- Fiscal stance --- Foreign assets --- Foreign exchange regulations --- Oil prices --- Fiscal policy --- External position --- Public debt --- Credit --- Money --- Banks and banking --- Investments, Foreign --- Debts, Public --- Central Africa Economic and Monetary Community