BEAC puts in circulation small banknotes

The Governor of the Bank of Central Africa States (BEAC) plans to inject new banknotes of 2000, 1000 and 500 CFA FRANCS to fight shortage.

This measure, which will be applied in the coming days, was well received by the financial experts from the Central Africa sub-region.

Financial transactions have become very difficult because of the scarcity of the above mentioned banknotes. Three smaller banknotes were put into circulation on November 24, 2003 throughout the CEMAC zone. For many years, users no longer use 10 and 5 CFA FRANCS coins. They find it tiny and little adapted to trade.

This situation also poses a problem. The monetary mass has diminished because of the sidelining of these parts. It is impossible to measure the impact on economies. The financial stability of the Central African countries is constantly threatened by shortages. The smaller denominations currently in circulation are mostly a waste.

Their life expectancy is limited. It must therefore be removed from the circuit progressively and replaced with new notes. This operation aims to guarantee the sustainability of trade. Commercial banks point an accusing finger on the BEAC.

They argue that for some time, the Bank of Central African States refuse to supply new banknotes.