Central African Economic and Monetary Community: Common Policies of Member Countries, and Common Policies in Support of Member Countries Reform Programs-Press Release; Staff Report; and Statement by the Executive Director
IMF Staff Country Reports, December 21, 2023
Source details
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- Central African Economic and Monetary Community: Common Policies of Member Countries, and Common Policies in Support of Member Countries Reform Programs-Press Release; Staff Report; and Statement by the Executive Director
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Bibliographic details
- Published: December 21, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400264450.002
Summary findings
- The paper discusses common policies of member countries, and common policies in support of member countries reform programs in Central African Economic and Monetary Community (CEMAC).
- The CEMAC economy continued to recover, supported by favorable hydrocarbon prices, strengthening its external position.
- Global inflationary pressures have eased somewhat, though remain elevated.
- Continued tightening of financial conditions could put a dent on economic growth.
- Maintaining fiscal consolidation paths consistent with IMF-supported programs and surveillance advice is critical for boosting economic diversification and resilience.
Monetary policy recommendations
- Maintain a data-dependent monetary policy with a tightening bias to preserve price stability and strengthen external buffers.
- Further increase interest rates on liquidity absorption and gradually converge toward the main policy rate.
- Switch to a full allotment procedure.
- Resolve remaining issues to achieve a complete and effective implementation of the foreign exchange regulations.
Fiscal and structural policy recommendations
- Maintain fiscal consolidation paths consistent with IMF-supported programs and surveillance advice.
- Accelerate structural reforms to lift potential growth and enhance economic diversification and resilience, including:
- Governance and regulation reforms.
- Productivity-enhancing investments.
- Deepening regional trade integration.
Risks and near-term outlook
- External buffers have strengthened due to favorable hydrocarbon prices, which supports recovery.
- Elevated inflationary pressures and tighter global financial conditions are downside risks to growth.
- Structural reforms and adherence to consolidation paths are emphasized to mitigate risks and support diversification.
International Monetary Fund. "Central African Economic and Monetary Community: Common Policies of Member Countries, and Common Policies in Support of Member Countries Reform Programs-Press Release; Staff Report; and Statement by the Executive Director", December 21, 2023.
Content in this bundle
- Executive Summary