International Monetary Fund, Central African Economic and Monetary Community (CEMAC) Financial System Stability Assessment, April 2016.
Dabla-Norris, E., J. I. Kim, and K. Shorono, “Optimal Precautionary Reserves for Low-Income Countries: A Cost-Benefits Analysis, IMF Working Paper 11/249, 2011.
Prepared by Vincent Fleuriet and Jose Gijon.
Based on data from the Bank for International Settlements (BIS) on overseas deposits by CEMAC’s non-banking sector.
The projections are based on an average oil price of US$44 per barrel in 2016, recovering to an average of US$55 per barrel by 2021.
The five-month import cover corresponds to an intermediate benchmark among three considered by the working group. This benchmark takes account of the strong volatility in foreign currency assets in CEMAC. (Comité Mixte sur le Rapatriement des Avoirs en Devises des États Membres de la CEMAC, August 2012).
It continued to be met until end-2015.
The Convention for the Operations Account of October 3, 2014 provides that the BEAC must deposit on average over ten days 50 percent of its international reserves to that account, with a minimum of 40 percent. The 50 percent are calculated on the total of international reserves excluding SDRs, and long-term investment resources constituted by the Fonds de Réserve pour les Générations Futures.
When the BEAC injects liquidity into CEMAC economies (directly to governments or via banks), beneficiaries may use these liquidities to buy foreign exchange from the BEAC, thereby putting downward pressure on reserves. At end–March 2016, member states had CFAF 1.6 billion in their accounts at the BEAC that could be used to buy foreign exchange. Therefore, an appropriate liquidity management is critical to avoid unnecessary pressure on international reserves.