Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director
IMF Staff Country Reports, July 5, 2023
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- Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director
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Bibliographic details
- Published: July 5, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400247378.002
Key findings and recent developments
- CEMAC benefited from favorable hydrocarbon prices in 2022.
- Economic recovery firmed up and the external position strengthened, with external reserves building up faster in recent months, although still below adequate levels.
- Monetary policy was tightened to stem rising inflation.
- Fiscal positions improved owing to higher oil revenues.
- Underlying non-oil fiscal positions deteriorated, highlighting the necessity of accelerating reforms and tackling recent fiscal slippages to help save part of the oil windfalls and bring polices back in line with IMF-supported program objectives and IMF staff advice.
Policy recommendations (IMF staff)
- Stand ready to tighten monetary policy further.
- Mop up excess liquidity.
- Resolve pending challenges to a complete, transparent, and consistent implementation of the foreign exchange regulations.
- Accelerate governance and productivity-enhancing structural and regulatory reforms.
- Broaden the tax base beyond the hydrocarbon sector.
- Deepen regional trade integration.
Analytical emphasis and risks
- Emphasis on saving part of the oil windfalls to align fiscal policy with IMF-supported program objectives.
- Risk of fiscal slippages undermining recent improvements in headline fiscal positions given deteriorating non-oil fiscal balances.
- Need for consistent implementation of foreign exchange regulations to reinforce external position repair and monetary policy effectiveness.
Subject focus and policy areas covered
- Fiscal policy, Fiscal stance, Foreign exchange, Inflation, Monetary policy, Oil prices, Prices, Revenue administration.
- Keywords highlighted: CEMAC authorities, CEMAC country, CEMAC heads of state conference, Fiscal stance, Global, Inflation, inflation expectation, Oil prices, policy mix coherence, Policy recommendation.
Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director — July 5, 2023
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