CEMAC leaders commit to accelerate repatriation of currencies

By Synthia Lateu

This involves converting foreign earnings into the local currency and transferring them back to domestic banks or financial institutions.

Central African Economic and Monetary Community (CEMAC) leaders have reaffirmed their commitment to fully implementing exchange regulations in the sub-region. Following an extraordinary summit in Yaoundé on December 16, 2024, they announced that member states will ensure economic operators’ prompt repatriation of currencies. This will be achieved particularly through the enforcement of Escrow account agreements for site restoration funds (RES Funds) by extractive companies (oil and mining) before January 30, 2025.
They further invited the International Monetary Fund (IMF), the World Bank, and other partners to assist states and the Central Bank in the process of repatriating and domiciling oil revenues.
In a communiqué jointly signed by the heads of state and representatives of the six member countries, they expressed concern over the downward trend in foreign exchange reserves, which increased from 2.3 months of imports in 2016 to 4.6 months in 2023 but has since declined in 2024. They also noted that the outlook for commodity prices and international trade appears unfavorable.
“The Heads of State reaffirmed their commitment to community solidarity in the face of economic shocks, through a coherent and coordinated regional strategy to preserve the viability of public finances, maintain the stability of the financial sector, and strengthen the external position of CEMAC,” the final document stated.
Reacting to CEMAC’s initiatives on the repatriation of foreign currencies, banking expert Christian Hervé Balog praised the move as one that will enhance economic stability. “The repatriation of foreign currencies will help our local and national economies acquire essential equipment. These purchases are often made in foreign currencies, so we need these funds to develop our countries and improve our infrastructure,” he said on Canal 2.
The decline in CEMAC’s foreign exchange reserves has been attributed to the low repatriation of export earnings by companies in the extractive industries. Official sources indicate that only 35% of export earnings in foreign currencies have been repatriated.