Central African Economic and Monetary Community (CEMAC): Staff Report on Common Policies and Challenges of Member Countries
IMF Staff Country Reports, August 4, 2015
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- Central African Economic and Monetary Community (CEMAC): Staff Report on Common Policies and Challenges of Member Countries
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Bibliographic details
- Published: August 4, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513561851.002
Executive summary and outlook
- Medium-term prospects for CEMAC are uncertain.
- Despite their recent stabilization, oil prices are projected to remain well below pre-shock levels in the medium term.
- Oil production is projected to start falling after 2017.
Key findings and risks
- Reliance on oil: The region’s outlook is materially affected by oil price and production dynamics; sustained lower oil prices and declining production after 2017 pose fiscal and external sector risks.
- Monetary policy transmission: Current monetary policy framework requires reform to strengthen transmission channels and enhance systemic liquidity management.
- Regional arrangements: Full compliance with the pooling of foreign exchange earnings with the regional central bank is critical for regional stability.
- Safeguards: Outstanding safeguards recommendations remain and require stepped-up implementation efforts.
Policy recommendations
- Accelerate reform of the monetary policy framework to:
- Improve transmission channels.
- Better manage systemic liquidity.
- Ensure full compliance with pooling of foreign exchange earnings with the regional central bank.
- Intensify efforts to implement outstanding safeguards recommendations.
Subjects and thematic focus
- Banking
- Expenditure
- Fiscal policy
- Fiscal stance
- Oil prices
- Prices
- Public debt
- Public investment spending
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- Central African Economic and Monetary Community
- _cr15222f