Christine Lagarde, International Monetary Fund (IMF) managing director, has said the reforms implemented by the Bank of Central African States (BEAC) are welcoming and important.
Lagarde disclosed this following a meeting held Thursday with Abbas Mahamat Tolli, governor of the BEAC, and other high-level officials of BEAC.
The meeting was an occasion for an open and cordial discussion on progress under the strategy adopted by the BEAC and the Banking Commission (COBAC) to support the adjustment efforts undertaken by CEMAC member states in response to the sharp decline in oil prices in 2014.
“I welcome the important reforms implemented by the BEAC and COBAC and their ongoing commitment to a strong policy response, which is critical to the success of Fund-supported programs with CEMAC countries, and thank the Governor for his leadership in supporting this far-reaching regional response,” Lagarde said.
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This effort currently underpins IMF-supported programs in four of the six CEMAC countries, she noted.
The BEAC recently reviewed decisions on monetary policy instruments and modes of intervention of BEAC in the money market, as well as decisions on the system of reserve requirements in the Economic and Monetary Community of Central Africa (CEMAC).
Among other things discussed at the meeting, Lagarde said she and Tolli emphasized the critical importance of CEMAC country authorities steadfastly implementing the policies and reforms, and achieving the fiscal objectives set in the IMF-supported programs, which are needed to restore the domestic and external economic sustainability of their respective countries and the CEMAC region, and to pave the way for higher and more inclusive growth in the region.
“These continued efforts by CEMAC countries, supported by appropriate policies of regional institutions, should lead to a further build-up in regional reserves to put the regional external position on a stronger footing.”
She added: “Governor Tolli and I discussed the strong measures adopted by the BEAC to support external stability —tighter monetary policy, the elimination of direct monetary financing of budgets, and ambitious reforms to strengthen and modernize the BEAC’s governance and operations — and on the need for continued supportive policies by BEAC. We also touched upon important reforms undertaken by COBAC to strengthen the stability of the financial sector. All of these efforts contributed to stopping the decline in BEAC’s official reserves in 2017.”