CEMAC zone experiences decline in foreign exchange reserves

The foreign exchange reserves of countries of the Central African Economic and Monetary Community (CEMAC) experienced in recent months, a drastic decline from $ 4.974 billion CFA francs in 2013 to 3.847 billion CFA francs in 2014.

This is a drop of 1,127 billion CFA francs according to the report forwarded to the Bank of Central African States (BEAC) by external auditors.

In detail, Cameroon in its capacity as the economic catalyst for the CEMAC zone, recorded a decrease of 171 billion CFA francs, a drop in reserves which is less significant than Congo’s 215 billion CFA francs, Gabon’s 213 billion CFA francs and especially, Equatorial Guinea’s 1232 billion CFA francs.

This drastic decrease in foreign exchange reserves which are the financial resources enabling CEMAC countries to ensure their external transactions is explained by the drop in world crude oil prices, as five of the six countries of the sub-region apart from Central African Republic, are oil producers.

This is why the decline in reserves is more drastic for Equatorial Guinea, the economy of which is mainly dependent on oil revenue, as well as for Congo and Gabon.

Cameroon gets the better of this situation in view of the structure of its economy which is varied and diversified, and to a lesser extent, Chad.