Abbas Mahamat Tolli, governor of the Bank of Central African States, BEAC, has debunked rumors that the Central African CFA Franc will be devalued soon.
Mahamat Tolli told pressmen in Yaounde on Tuesday July 11 that the value of the currency issued by the unique central bank of Cameroon, Chad, Gabon, Equatorial Guinea, Central African Republic and the Republic of the Congo, will remain the same for the time being.
According to the BEAC Governor, since the last devaluation of the FCFA on January 12, 1994, the central bank has observed a phenomenon whereby individuals have been circulating unfounded information relating to another depreciation of the legal tender. Abbas said they were overwhelmed recently with the social media hoax that the Central African CFA Franc as well as that of West Africa will be devalued.
The BEAC Governor said the present economic and financial situation of the Central African Economic and Monetary Community (CEMAC) and that prior to the devaluation in 1994 are totally different. He said the last devaluation was done to absorb the profound financial and economic disequilibrium which befell African countries of the Franc zone after the failure of structural adjustments in the late eighties. CEMAC member countries at that time were facing a serious economic recession, considerable budget deficits, substantial balance of payment deficits occasioned by drop in global commodity prices, amongst others. However, Abbas insisted that the situation between then and now are completely different.