(Business in Cameroon) - The administrative board of the International Monetary Fund (IMF) is supporting the implementation of BEAC’s new foreign exchange regulation. This is revealed in a communique published by the bank’s governor on July 2, 2019, at the end of a meeting of the said administrative board about CEMAC’s joint policies. According to the communique, the new regulation must have the full support of national authorities.
This position statement comes amid strong criticism from economic operators towards the BEAC. For instance, the Inter Patronal Groupings of Cameroon (Gicam), in a recent communique, indicated that the new regulation is not providing tangible solutions to firms’ problems (currency shortage notably) nor does it reassure economic operators. Instead, the groupings say, this regulation has just established increased administrative controls that are detrimental to imports.
Indeed, to stop the drastic drop in CEMAC countries’ foreign reserves, which is exposing the currency to devaluation, the central bank tightened the regulations of international fund transfers. Recently, it issued new foreign exchange regulations. According to economic operators, these regulations have restricted access to currency thus affecting imports and other international transactions.