BANK OF CENTRAL AFRICAN STATES

ANNUAL REPORT

2017

SUMMARY

LIST OF TABLES ..................................................................................................5 LIST OF FIGURES................................................................................................7 LIST OF INSETS...................................................................................................8 LIST OF ACCRONYMS AND ABBREVIATIONS...................................................9 MAP OF MEMBER STATES OF THE ECONOMIC AND MONETARY COMMUNITY OF CENTRAL AFRICA (CEMAC)................................................11 THE GOVERNOR’S ADDRESS..........................................................................13 OVERVIEW OF THE YEAR 2017........................................................................15

I. ECONOMIC AND MONETARY GROWTH.......................................................17

1. INTERNATIONAL CONTEXT......................................................................19
1.1. Economic conditions of major partners to CEMAC Member States ... 19 1.2. Financial, Foreign Exchange and Gold Markets..................................23 1.3. Markets for basic commodities.................................................................. 27
2. 2.ECONOMIC AND MONETARY SITUATION IN CEMAC .........................29

2.1. Economic growth.................................................................................29 2.2. Prices and competitiveness.................................................................34 2.3. Public finance and external debt .........................................................39 2.4. External sector ....................................................................................43 2.5. Monetary sector...................................................................................45
3. REGIONAL INTEGRATION .......................................................................55

3.1. Multilateral surveillance.......................................................................55 3.2. Topical issues ......................................................................................58

II. MISSIONS AND GOUVERNANCE.................................................................67

1. MISSIONS...................................................................................................69
1.1. Monetary policy............................................................................................. 69 1.2. Currency issuance ........................................................................................ 76 1.3. Management of foreign exchange reserves ................................................ 77 1.4. Management of payment systems and methods ........................................ 79 1.5. Financial stability........................................................................................... 81 1.6. Setting foreign exchange policy within the Community............................... 98
2. GOVERNANCE...........................................................................................99

2.1. Decision-making bodies................................................................................ 99 2.2. Supervisory authorities............................................................................... 103 2.3. Other bodies ............................................................................................... 104

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III. MANAGEMENT AND COOPERATION .......................................................109

1. ACTIVITIES AND PROJECTS OF BEAC .................................................111
1.1. Research ..................................................................................................... 111 1.2. Human Resource Management................................................................. 112 1.3. Capacity building......................................................................................... 114 1.4. Audit and Control......................................................................................... 115 1.5. IT and telecommunications......................................................................... 116 1.6. Legal affairs and contracts......................................................................... 116 1.7. Investment and wealth management......................................................... 118 1.8. Strategic planning and budgeting............................................................... 118 1.9. Communication ........................................................................................... 119
2. REGIONAL AND INTERNATIONAL COOPERATION ..............................121

2.1. Regional cooperation.................................................................................. 121 2.2. International cooperation ............................................................................ 123
3. BEAC ACCOUNTS ...................................................................................127

3.1. Balance sheet.............................................................................................. 127 3.2. Income statement........................................................................................ 131 3.3. Auditors’ Report........................................................................................... 133

APPENDICES ...................................................................................................135

A. GENERAL INFORMATION.......................................................................137 B. ECONOMIC, MONETARY AND FINANCIAL APPENDICES....................157

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LIST OF TABLES

Table 1: Key metrics in financial markets............................................................26 Table 2: Evolution of Gross Domestic Product by country from 2012 to 2017....30 Table 3: Contribution of aggregate demand to actual growth from 2012 to 2017 ....32 Table 4: Contribution of various sectors to actual GDP growth from 2012 to 2017..34 Table 5: Table of financial transactions by CEMAC Member
States from 2012 to 2017......................................................................40

Table 6: CEMAC Balance of Payments from 2015 to 2017 ................................44 Table 7: Summary monetary situation of CEMAC ..............................................46 Table 8: Increase in money supply......................................................................47 Table 9: Increase in the components of money supply trends............................48 Table 10: Evolution of net foreign assets of the monetary system........................49 Table 11: Evolution of net foreign assets of BEAC................................................49 Table 12: Evolution of gross foreign assets of BEAC............................................50 Table 13: Evolution of official external commitments ............................................50 Table 14: Evolution of the net foreign position of banks........................................51 Table 15: Expansion of domestic credit ................................................................51 Table 16: Evolution of net foreign assets on States per component.....................52 Table 17: Evolution of net foreign assets on Public Treasuries.............................53 Table 18: Changes in credits to the economy by maturity ....................................54 Table 19: Results of multilateral surveillance within CEMAC............................... 57 Table 20: Monetary and credit targets as of 31 December 2017..........................72 Table 21: Public placements remuneration scale at BEAC...................................73 Table 22: Minimal coefficients and thresholds for compulsory reserves at BEAC .....74 Table 23: Distribution of BEAC support schemes to Public Treasuries.................75 Table 24: Interbank rates in CEMAC, WAEMU and the Euro Zone ......................77 Table 25: Progress of transactions on payment systems and methods................81 Table 26: Situation in 2017 on monthly reporting of taxpayers. ............................82 Table 27: Progress on the situation of balance sheets .........................................83 Table 28: Trend in customer deposits per type of depositor..................................84 Table 29: Trend in customer deposits per type of account....................................85 Table 30: Trend of gross credits per type of beneficiary as of 31 December 2017...... 86 Table 31: Trend of transactions with BEAC...........................................................87 Table 32: Trend of transactions with associated correspondents..........................87 Table 33: Trend of transactions with non-associated correspondents...................88 Table 34: Number of banks in compliance with prudential requirements..............89 Table 36: Number of assents per category and country as of 31 December 2017....90

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Table 35: Statistics on the number of assents from December 2013 to December 2017.................................................................................90

Table 36: Number of assents by category and country as of 31 December 2017.......................................................................90
Table 37: Progress on the situation of balance in MFI..........................................91 Table 38: Progress of some indicators in the microfinance sector as of 30th September 2017...................................................................93

Table 39: Progress of average debit rate..............................................................94 Table 40: Progress of average credit rate.............................................................94 Table 41: Comparison of MFI-Bank activities in September 2017........................95 Table 42: Listed bonds with BVMAC as of 31 December 2017 ............................98 Table 43: Listed bonds with DSX as of 31 December 2017..................................99 Table 44: Total transactions per share at DSX in 2017.........................................99 Table 45: Growth in the number of staff at BEAC in 2017 ..................................115 Table 46: Progress report of the Central Bank....................................................132 Table 47: Development of products ....................................................................133 Table 48: Increase in taxes .................................................................................134 Table 49: Income Statement for the 2017 Financial Year....................................135

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LIST OF FIGURES

Figure 1: Key metrics of the international environment ..................................... 20 Figure 2: Composite index of basic commodity prices exported from CEMAC . 27 Figure 3: Distribution of nominal CEMAC GDP in 2012 and 2017 .................... 30 Figure 4: Distribution of CEMAC GDP - oil and non-oil sectors......................... 31 Figure 5: Actual growth in CEMAC Member States........................................... 31 Figure 6: Annual average inflation rate from 2012 to 2017................................ 35 Figure 7: Contribution of consumption purposes to the price index of consumption within CEMAC........................................................... 36
Figure 8: Progression of REER and NEER ....................................................... 37 Figure 9: Total contributions to global REER ..................................................... 37 Figure 10: Progression of REER ......................................................................... 38 Figure 11: Progression of budgetary balance, commitment basis, including grants .41 Figure 12: Rate of public sector external debt..................................................... 42 Figure 13: Monthly progress of foreign exchange reserves in the Zone since January 1993 ............................................................................ 59

Figure 14: Foreign exchange reserves and performance criteria in terms funding capacity for balance of payment ............................................ 60

Figure 15: Initial projection for foreign exchange reserves in 2017 and the observed level........................................................................ 62

Figure 16: Progression of contributions from explanatory factors for stabilising foreign exchange reserves in 2017..................................................... 62

Figure 17: Age pyramid of BEAC staff as at 31 December 2017....................... 115

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LIST OF BOXES

Box 1: Progress on Monetary Policy Reforms ........................................................ 70 Box 2: Illustrated calculation compulsory reserve bases........................................ 74 Box 3: Emergency liquidity provision from BEAC ................................................... 77 Box 4: Risk management system handled by the Trading Room............................ 80 Box 5: Consultation on the new CEMAC financial market facilitation system......... 92

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LIST OF ACCRONYMS AND ABBREVIATIONS

AMCP CAR

: African Monetary Cooperation Programme : Central African Republic

CIEA DGCG DIPG DPRAI DPSBCG DSX

: Composite Index of Economic Activities : Directorate General for General Control : Directorate for Investment, Wealth Management and Administration : Risk Prevention and IT Audit Department : Department for Strategic Planning, Budgeting and Management Control : Douala Stock Exchange

ECB

: European Central Bank

EONIA EURIBOR ECF

: Euro OverNight Index Average : Euro Interbank Offered Rate : Extended Credit Facility

FED

: Federal Reserve System

GRAINE

: Gabonese Agricultural Achievements and Initiatives of Committed Citizens programme

HIPCI IMF

: Heavily Indebted Poor Countries Initiative : International Monetary Fund

IMA

: Investment Management

IOSCO ITB MFI

: International Organization of Securities Commissions : Institute of Banking Techniques : Microfinance Institution

MSRC-AC

: Sub-Regional Coordination Mechanism for United Nations System Support - Central Africa

MUCODEC OECD OPEC OTA

: Congolese Savings and Loans Scheme : Organisation for Economic Co-operation and Development : Organisation of Petroleum Exporting Countries : Assimilable Treasury Bond

PDRH PI

: Human Resource Master Plan : Investment Portfolio

PNG

: Overall Net Position

PSB

: Central Bank Strategic Plan

• PT
• : Trading Portfolio

• PR
• : Penalty rate

REER SADC SDM

: Real Effective Exchange Rate : Southern African Development Community

: Trading Room
SDR

: Special Drawing Rights

SIFI - JA SME SVT

: International Finance and Investment Company - Jeune Afrique : Small and Medium-Sized Enterprise

: Primary Dealer
SYGESBEAC : BEAC Management System SYGMA

: Automated Gross Amount System
SYSCOBEAC : Accounting System of the Bank of Central African States

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SYSTAC TCM

: Central African Telecompensation System : Minimum Credit Rate

TEG

: Annualized percentage rate

• TIAO
• : Auction rate

TIMP TIPP TISPP UGRIF VAR

: Weighted-average Interbank Rate : Repurchase Agreement Interest Rate : Interest Rates on Public Investments : Financial Institutions Reform Management Unit : Vector Autoregressive

WAEMU

: West African Economic and Monetary Union

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MAP OF MEMBER STATES OF THE ECONOMIC AND
MONETARY COMMUNITY OF CENTRAL AFRICA (CEMAC)

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• 8¡
• 1 2¡
• 2 0¡
• 2 4¡

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L Y B I E

• 20¡
• 20¡

FAYA LARGEAU

N I G E R

Fada
16¡

12¡ 8¡
16¡ 12¡ 8¡

T C H A D

S O U D A N

BILTINE
ABÉCHÉ
MAO

LAC

BOL

TCHAD

ATI MONGO

Kouss ri

N I G E R I A

MASSENYA
AM TIMAN
MAROUA

BONGOR

LAÏ
BIRAO
GAROUA

H

SARH
DOBA
MOUNDOU
NDÉLÉ

NGAOUNDÉRÉ

C E N T R A F R I Q U E

KAGA BANDORO
BOSSANGOA
BRIA
BOZOUM

BOUAR

Dj ma

BAMENDA
BAMBARI

Foumban

SIBUT
Obo

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BANGASSOU

MOBAYE

Nkongsamba

BERTOUA

BANGUI

MBAIKI
BUEA

Limbe
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DOUALA

YAOUNDE

N

NOLA

Ed a

MALABO

Yokadouma

LUBA
Kribi EBOLOWA

Sangmelima

REPUBLIQUE DEMOCRATIQUE
DU CONGO

OCEAN

Bitam

EBEBIYIN
BATA
IMPFONDO
MONGOMO
Souanké

Mbini

OYEM
EVINAYONG
OUESSO

GUINÉE EQUATORIALE

MAKOKOU

Kell
Okondja

LIBREVILLE

• 2
• 4¡

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Makoua

OWANDO

é

PORT-GENTIL

LAC

LEGENDE

LAMBARÉNÉ

Lastourville

KOULAMOUTOU

Moanda

EWO

TOUMBA

Oyo

Capitale d'Etat

G A B O N

MOUILA

LAC

Chef lieu de région Autres localités

FRANCEVILLE

LEOPOLD II

DJAMBALA
TCHIBANGA

Contour Afrique Centrale Limites d'Etats

• K
• S

Mayumba

SIBITI MADINGOU

N’kayi

A T LANTIQUE

4 ¡

Cours d'eau

4¡

DOLISIE
POINTE NOIRE

BRAZZAVILLE

KINSHASA

Chemin de fer

KINKALA

CABINDA

Echelle 1:11 000 000

• 50 Km
• 0
• 100
• 200
• 300 Km

Realis e par :

INSTITUT NATIONAL DE CARTOGRAPHIE
779 Avenue Mgr VOGT CAMEROUN

2 0¡

• INC - CAMEROUN 2004
• C

A N G O L A

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THE GOVERNOR’S ADDRESS

The Governor of BEAC

The economic situation of countries within the Economic and Monetary Community of Central Africa (CEMAC) greatly improved in 2017, after a slight recession in 2016 as a result of the fall in commodity prices on the international market, especially crude oil, which is the main export of the Sub-region. Hence, strengthening the macroeconomic sector through vigorous and concerted action of Member States and Community institutions, including the Central Bank, made it possible to contain the drop in foreign exchange reserves.