National Offices

On November 23, 1972, at a meeting in Brazzaville, the Governments of the five countries that were members of the Central Bank of Equatorial African States and Cameroon (Banque Centrale des Etats de l'Afrique Equatoriale et du Cameroun (BCEAEC)) signed a new Convention of Monetary Cooperation with France which established the Bank of Central African States (Banque des Etats de l'Afrique Centrale (BEAC)) to succeed the BCEAEC. The new Bank came into effect on April 2, 1973. The five original members, Cameroon, Central African Republic, Chad, Republic of the Congo, and Gabon, were joined by Equatorial Guinea on January l, 1985. Under its Convention and statutes, the BEAC is declared a "Multinational African institution in the management and control of which France participates in return for the guarantee she provides for its currency."

The former BCEAEC was established in 1959, after reorganization of the Institut d'Emission de l'Afrique Equatoriale Francaise et du Cameroun, to serve as a central bank for member countries, and the sole authority for issuing CFA currency in those countries. All notes were legal tender in the five participating countries and guaranteed by France for unlimited convertibility into French francs and, since January 1, 1999 in Euro. The BEAC continues to maintain the common monetary unit and the pooling of foreign reserves in a joint fund. However, pursuant to the economic development and the trade flow of the Member States and upon decision by the Board of Directors, the new Convention provides that part of these reserves may be deposited in convertible currency accounts with the Bank for International Settlements of foreign central banks, or used for the subscription of negotiable notes maturing within not more than two years issued in terms of convertible currency by international financial institutions in which the Bank's Member States participate; the cumulative amount of the sums so deposited or used for the subscription of notes may not exceed 35 percent of the Bank's net external holdings, excluding the Member States' reserve tranche positions in the IMF and SDRs. The Convention also provides for harmonization of the members' policies in the area of exchange and payments, credit control, and banking legislation.

The Directorate in-charge of Banking Supervision was transformed into the Central African Banking Commission (Commission Bancaire de l'Afrique Centrale (COBAC)), an autonomous regional institution in charge of banking regulation/legislation and supervision, and which went into operation on December 22, 1992. It is chaired by the Governor of the BEAC. The Secretary General is named by the Council of the Heads of State of CEMAC. At this time, COBAC is using Bank premises and staff, while waiting for its own installations and personnel.

On February 26, 1982, the BEAC was prescribed by the IMF as a holder of SDRs, and thus authorized to acquire and use SDRs in operations and transactions with participants in the IMF's SDR Department and other holders under the same terms and conditions as participants. An interbank money market was introduced on July 1, 1994, under the supervision of the BEAC.

COMPOSITION

6 member countries: Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon

STRUCTURE

The Board of Directors decides overall monetary policy. It also establishes rediscount ceilings on short- and medium-term credit for the different member countries after a bi-annual monetary programming exercise. However, the interest rates, which are uniform in all member countries, are determined by the Governor, who then reports to the Board of Directors.

The Board of Directors is composed of 13 members, ten appointed by the six member countries and three by France. The Chairmanship of the Board of Directors is assumed by the Governor of BEAC. In his absence, it is assumed by the Vice Governor. The Secretary-General is the Rapporteur of the Board.

GENERAL PUBLICATIONS