Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director

International Monetary Fund

No 2025/171, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper examines Central African Economic and Monetary Community’s (CEMAC) common policies in support of member countries reform programs. The CEMAC economy gained some momentum in 2024, and inflation continued to ease while still above the regional converge criterion. The external position weakened further, with the current account deficit rising and the reserve coverage stagnating. Without decisive corrective actions the reserve coverage could fall below 4 months of prospective import by 2027, far under the assessed adequate level. Post-election economic plans for a more sustainable policy mix, in line with Head of State commitments and prospective IMF-supported arrangements, could steer the region toward a resilient outlook and stabilize the current reserve coverage, while strengthening the fiscal position. The baseline excludes these anticipated corrective actions pending their full definition, scope, and implementation plan. Both outlooks are subject to high uncertainty and elevated risks, notably related to debt rollover, tightening financing conditions and sovereign debt distress. IMF staff advised maintaining a data-dependent monetary policy stance and refraining from premature further loosening. It recommended keeping the policy rate unchanged at its current level.

Keywords: CEMAC authorities; financing condition; CEMAC banking legislation; CEMAC economy; Policy discussion; CEMAC banking system; CEMAC program country; Fiscal stance; Financial sector stability; Anti-money laundering and combating the financing of terrorism (AML/CFT); Liquidity; Global; Middle East (search for similar items in EconPapers)
Pages: 64
Date: 2025-07-09
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