Central African leaders pledge fiscal discipline as blocs economy slows

Leaders of the six countries that make up the Central African Economic and Monetary Community (CEMAC)
have agreed they will not devalue the CFA Franc following an extraordinary session in Cameroon’s capital Yaounde on Friday.

Although the agenda of the meeting was not clear,
reports confirmed that the CFA Franc will not be devalued contrary to rumors from various media reports.

The leaders also pledged to enhance more fiscal discipline in the bloc which is currently facing an economic crisis.

There has been a growing debate on the use of the currency – which is pegged to the French Franc – and which analysts say needs to be devalued to encourage growth in the region.

The CFA Franc was created in 1945 and is the common legal tender of the CEMAC and the eight countries of the West African Economic and Monetary Union (WAEMU).

CEMAC brings together Cameroon, Chad, Gabon, Equatorial Guinea, the Republic of Congo and the Central African Republic.

The six nation CEMAC zone has been facing an economic slowdown during the last three years following a sharp drop in oil prices and is projected to grow by a paltry 1 per cent this year.