(Business in Cameroon) - In the CEMAC region, the new foreign exchange regulation that came into effect in March 2019, is still having positive impacts for the constitution of the central bank’s foreign reserve.

According to authorized sources within the BEAC, at end August 2019, commercial banks, in compliance with the new regulation, transferred XAF3,896 billion in foreign currencies to the central bank. Compared with the XAF1,181 billion of foreign currencies those same banks transferred to the central bank between January and August 2018, this represents an improvement by 229%.

Let’s note that according to the new regulation, commercial banks have to transfer 70% of the foreign currencies repatriated by their clients to the BEAC. They are only allowed to keep 30% of those foreign currencies to meet their clients’ day to day needs.

Experts explain that the measure helps progressively end the mess formerly created around the management of foreign currencies (illegal imports of foreign currency, the uncontrolled opening of foreign currency accounts, failure to repatriate foreign currency from export transactions, creation of a parallel foreign currency market by commercial banks, etc.) in the CEMAC region.  

The implementation of that regulation created a real currency crisis forcing the BEAC to take easing measures to avoid asphyxiation of companies operating within CEMAC.

According to monetary authorities, this crisis has been definitely resolved and the implementation of that regulation has been producing rather positive impacts on the economies of the six-member countries.

Brice R. Mbodiam