(Business in Cameroon) – The Bank of Central African States (BEAC) has announced that the foreign reserves of CEMAC countries are expected to drop by 5% by the end of 2024. The reserves will total CFA6,539 billion, down from the previous year. These reserves, which support the region’s collective imports of goods and services, will cover about 4.5 months of imports, compared to 4.8 months in 2023.
This updated projection, shared by the BEAC’s Monetary Policy Committee on September 23, 2024, in Yaoundé, shows a more pessimistic outlook. Initially, the central bank had forecast a 2.7% decrease in reserves for 2024. According to BEAC Governor Yvon Sana Bangui, the persistent decline stems from the continued high volume of imports by CEMAC nations, despite efforts to boost local production through import-substitution policies in countries like Cameroon.
The drop in foreign reserves has been ongoing since 2023, even though the central bank has enforced stricter currency regulations since March 2019 to safeguard the region’s reserves. However, the implementation of these rules has faced resistance from some businesses, despite recent efforts by the BEAC to ease certain restrictions in response to complaints.
