| Description |
1 online resource (62 pages) : color illustrations |
| Series |
IMF country report ; no. 16/290 |
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IMF country report ; no. 16/290.
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| Contents |
CEMAC--reserves management -- CEMAC--debt sustainability analysis -- CEMAC--institutions and medium-term fiscal framework -- CEMAC--implementation of the harmonized public financial framework -- CEMAC--developments in the public securities market |
| Summary |
This paper assesses the appropriate level of international reserves for the Economic and Monetary community of Central Africa (CEMAC) and reviews the impact of the current oil-price slump. Standard approaches to reserve adequacy recommend a reserve coverage of five months of prospective imports for a commodity-dependent monetary union. Under the current outlook for oil prices, prospects for maintaining reserve coverage at this level are challenging. Against this background, the paper offers proposals to reform the CEMAC's reserve management framework. -- The risk of external debt distress for the Economic and Monetary Community of Central Africa (CEMAC), as a whole, is moderate, despite a steady increase in the debt burden. None of the policy-dependent thresholds is breached under the baseline scenario. However, all five thresholds are breached under at least one of the standard stress tests, which points to risks to macroeconomic stability. CEMAC should implement an active and effective region-wide risk management framework for external debt sustainability |
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Although the institutional framework of the Economic and Monetary Community of Central Africa (CEMAC) appears reasonably sound, the slump in oil prices has brought to the fore coordination weaknesses, which, if not addressed, could threaten the monetary union. In particular, financing needs associated with widening fiscal and external current account deficits have raised concerns about macroeconomic stability and highlighted the need for a significant fiscal adjustment. To address these challenges, the CEMAC Commission has begun to strengthen the regional surveillance framework and has expressed interest in implementing counter-cyclical fiscal policies. This paper discusses the design and implementation issues involved in establishing a credible medium-term framework for fiscal sustainability |
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Under the treaty of March 16, 1994 creating the Central African Economic and Monetary Community (CEMAC) and Article 54 of the Convention governing the Central African Economic Union (UEAC), the CEMAC member states committed to strengthening regional integration through increased harmonization of their fiscal policies and legislation. This paper reviews the implementation of that commitment and the challenges of the harmonized public financial management framework. -- In the wake of the sharp fall in oil prices since mid-2014, Economic and Monetary Union of Central Africa (CEMAC) countries' issuance of public securities have significantly increased. This paper describes recent developments in the securities market in CEMAC and the risk premium hierarchy among member countries. It suggests the possible market mispricing and highlights challenges. The paper makes recommendations to develop CEMAC's securities market |
| Notes |
"September 2016." |
|
"June 28, 2016; approved by the African Department; prepared by Vincent Fleuriet, Jose Gijon, Gabriel Leost, Koffie Nassar, Du Prince Tchakoté, Marie-Christine Uguen, and Jean van Houtte, team led by Mario de Zamaróczy"--Page 2 of pdf |
| Bibliography |
Includes bibliographical references |
| Notes |
Online resource; title from pdf title page (IMF.org website, viewed October 7, 2016) |
| Subject |
International Monetary Fund -- Africa, Central
|
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Communauté économique et monétaire de l'Afrique centrale
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| SUBJECT |
Communauté économique et monétaire de l'Afrique centrale fast |
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International Monetary Fund fast |
| Subject |
Reserves (Accounting) -- Africa, Central
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Debts, External -- Africa, Central
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Petroleum products -- Prices -- Africa, Central
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Economic development -- Africa, Central
|
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Monetary policy -- Africa, Central
|
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Monetary unions -- Africa, Central
|
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Fiscal policy -- Africa, Central
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Public investments -- Africa, Central
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Debts, External
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Economic development
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Fiscal policy
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Monetary policy
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Monetary unions
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Petroleum products -- Prices
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Public investments
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Reserves (Accounting)
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Central Africa
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| Form |
Electronic book
|
| Author |
Gijón-Spalla, José G., author, (IMF staff)
|
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Léost, Gabriel, author, (IMF staff)
|
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Ben Nassar, Koffie, author, (IMF staff)
|
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Tchakoté, Du Prince, author, (IMF staff)
|
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Uguen, Marie-Christine, author, (IMF staff)
|
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Houtte, Jean van, author, (IMF staff)
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Zamaróczy, Mario de, team leader, (IMF staff)
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International Monetary Fund, publisher.
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| ISBN |
9781475535464 |
|
1475535465 |
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