Page 305 - Atouts Economiques Cameroun-2019-GB
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                 INTRODUCTION
After the oil price collapse of 2015, the foreign exchange reserves of the CEMAC member states fell, threatening the stability of the CFA franc. To find a remedy for this, a number of countries com- mitted in December 2016 to conclude economic and financial programmes with the IMF. In this context, Cameroon signed an agreement with the IMF on June 26, 2017. In the monetary and financial area, this aimed at strengthening the resilience of the financial sector and implemen- ting a restrictive monetary policy.
MONETARY POLICY
The monetary policy of the CEMAC member states is defined and implemented by the BEAC. The latter issues currency, guarantees its stability and supports economic policies. The CFA franc has a fixed parity with the euro. Monetary stabi- lity is achieved by controlling inflation and kee- ping the rate of currency hedging above 20%. In order to carry out its tasks, BEAC has two instru- ments: the refinancing policy and the required reserve policy.
REFINANCING POLICY
To implement the refinancing policy, the BEAC uses two instruments: the interest rate policy and the refinancing objectives.
INTEREST RATE POLICY
The Monetary Policy Committee increased by 50 basis points the tender operations interest rate (TIAO) and the treasury advance rate to 2, 95% on March 27, 2017. It reduced the penalty rate for banks and public treasuries from 10% to 7% on July 11, 2017. The other main intervention rates in the money market were kept unchanged.
OBJECTIVES OF REFINANCING
To set the growth objectives of monetary and refi- nancing aggregates that are compatible with the financing needs of the economy, the Central Bank relies on monetary programming. The Bank of Central African States (BEAC) settles the amount of liquidity to be injected into or dented in each state, under the constraint of preserving major macroeconomic balances.
ADVANCES TO STATES
In 2017, the maximum refinancing amount for Cameroon is maintained at 576.9 billion. The level of usage of these resources, which stood at 211 billion at the end of 2016, had increased and amounted to 280 billion at the end of June 2017. The available margin is 296.9 billion.
FINANCIAL SYSTEM
LES ATOUTS ECONOMIQUES DU CAMEROUN
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