This figure, below the regional target set at 4.5 billion euros, was revealed by the International Monetary Fund (IMF) as part of the annual exchange of common policies of the member countries of the Economic and Monetary Community of Central Africa (CEMAC). It reflects a slowdown in the accumulation of foreign exchange reserves and a persistent fragility of the sub-region's external position. The international financial institution attributes this failure to meet objectives to the drop in oil prices, the main source of foreign exchange for CEMAC economies, and to budget overruns. Moreover, extractive industries operating in the sub-region (Cameroon, Gabon, Chad, Equatorial Guinea, CAR, Congo) repatriated the equivalent of 1,684.1 billion FCFA in foreign exchange to CEMAC in the first half of 2024. This amount, which represents a portion of their export earnings, however, experienced a 54.3% decline compared to the surrender made during the same period the previous year.This trend has intensified due to the persistence of exemptions granted to mining and oil companies regarding the repatriation of their export earnings. While the new foreign exchange regulation, which came into effect in 2019, aims to strengthen the contribution of oil and mining operators to the region's reserves, its application to these operators only began on January 1, 2022, after a two-year grace period during which the extractive sector actors negotiated relaxations with the BEAC. To date, they only surrender 35% of their foreign assets.Given the situation, the IMF expresses its concerns about the trajectory of the BEAC's net foreign assets for the entire year 2024. Preliminary data indicate that the objectives set for December are also at risk of not being met. In comparison, at the end of December 2023, the BEAC's net foreign assets stood at approximately 3,238 billion FCFA, after a moderate increase of 1.7% over the year. In this context, the BEAC is expected to continue playing a central role in preserving the monetary and financial stability of the sub-region. This mission is accomplished when, internally, the average annual inflation rate remains below or equal to 3%, and externally, the gross foreign assets cover approximately 60% of the BEAC's sight commitments, equivalent to at least three months of imports of goods and services as well as external debt service, in order to preserve the anchoring of the CFA franc to the euro and reassure economic and financial partners.Aware of these challenges, the Central Bank Governor, Yvon Sana Bangui, recently sounded the alarm on the weakening of foreign exchange reserves, particularly due to the massive imports of fuel by CEMAC countries. He emphasized the need to revive local production of refined products to limit dependence on imports, citing the refinery in Chad and Sonara in Cameroon as examples, whose rehabilitation remains a priority to preserve the Net Foreign Assets (AEN).To address these challenges, the BEAC will need to strengthen the strict application of the foreign exchange repatriation regulation, which requires extractive companies to progressively surrender up to 75% of their export earnings. The monetary institution could also increase pressure to limit non-priority expenditures by member states and encourage structural reforms aimed at diversifying the region's foreign exchange sources

Christelle koambi