(Business in Cameroon) - During their latest meeting last March 17 in Yaoundé, the Cemac Heads of State decided on a gradual revision of the monetary cooperation framework with France. They agreed to fast-track discussions at ministerial levels.
As a reminder, in November 2019, the Governor of the Bank of Central African States (Beac), Abbas Mahamat Tolli, and the President of the Cemac Commission, Daniel Ona Ondo, were tasked with conducting an "in-depth reflection" on the issue. The results were presented at the March 17 meeting, following which the heads of state prescribed "to extend the reflection to the minister in charge of finance and the economy" and to "plan according to a precise timetable, the measures to be taken in the short, medium and long term," we learned.
According to sources close to the matter, the reforms to be implemented in the short or medium term could be similar to those within the West African Economic and Monetary Union (Waemu), which also uses the CFA. These include changing the currency denomination, closing the operating account in the books of the Bank of France to allow Cemac to own 100% of its foreign exchange reserves (against 50% currently), and withdrawing French representatives from Beac's decision-making and supervisory bodies.
Measures such as pegging the CFA to a basket of currencies are considered more delicate, but if they are adopted at the end of the discussion, they should be implemented over the long term.