Yaounde, Cameroon Africa. (Cameroon News) – Cameroon Money The Governor of the Bank of Central African States (BEAC), Lucas Abaga Nchama says there is no envisaged devaluation of the CFA francs, the currency used by countries of the Franc zone in West and Central Africa.
Luca Abaga Nchama who is also the chairperson of the Monetary Policy Commission of the Central African States, granted a press conference in Yaounde, Cameroon’s political capital city after the commission’s meeting on December 16, 2011.
He said Franc zone member countries and their external partners do not envisage any possible devaluation of the CFA francs. This, he explained was because countries of the zone have high prices for their export products such as cocoa, coffee, cotton and petroleum products.
Economic growth is the Central African Sub-region, he said is about 5 percent, countries have comfortable exchange reserves, external coverage of the currency is 100 percent and economies are generally stable.
The CFA Francs was devalued in January 1994, Lucas Abaga Nchama said, because of serious economic recession. He said there was balance of payment deficit, drop in prices of export raw materials and a depreciation of the banking system leading to the bankruptcy of some of the financial institutions.
There was the need to devalue the currency to enable countries of the Franc zone to regain balance of payment, reduce budgetary deficits and for growth to pick up, the BEAC Governor explained.Pin It