Central African Economic and Monetary Community: Common Policies of Member Countries, and Common Policies in Support of Member Countries Reform Programs-Press Release; Staff Report; and Statement by the Executive Director

This paper discusses common policies of member countries, and common policies in support of member countries reform programs in Central African Economic and Monetary Community (CEMAC). In order to preserve price stability and strengthen external buffers, maintain a data-dependent monetary policy with a tightening bias; further increase interest rates on liquidity absorption and gradually converge toward the main policy rate, and switch to a full allotment procedure; and resolve remaining issues to a complete and effective implementation of the foreign exchange regulations. The CEMAC economy continued to recover, supported by favorable hydrocarbon prices, strengthening its external position. Global inflationary pressures have eased somewhat, though remain elevated, while continued tightening of financial conditions could put a dent on economic growth. Maintaining fiscal consolidation paths consistent with IMF-supported programs and surveillance advice, and accelerating structural reforms are critical for boosting economic diversification and resilience. In order to lift potential growth and enhance economic diversification and resilience, accelerate structural reforms in areas of governance and regulation; productivity-enhancing investments; and deepen regional trade integration.