Visionary Reports

The two day workshop organized by SCB Cameroon in partnership with GICAM gave the men and women of the press first hand information on the innovations that went into effect in March 2019.

Ever since the new CEMAC regulations went into operation in March 2019, most people and institutions were still in the dark  as  far as the regulations were concerned. Against this backdrop, the  Societe Commerciale de Banque Cameroun (SCB) in partnership with  Cameroon Employers Association known by its  French acronym GICAM organised a two day training workshop for journalists in the Littoral Region,  The workshop from the 16- 17 of December 2019 brought together over 25 journalists from both the private  and the public media. For two days, journalists were drilled on the new Currency Exchange Regulation nº02/18/CEMAC/UMAC/CM of the Central African Economic and Monetary Community (CEMAC) (the New CEMAC Currency Exchange Regulation) which finally entered into force on March 1, 2019.  The new regulations cancels and fully replaces the former regulation nº02/00/CEMAC/UMAC/CM dated April 29, 2000 (the Former CEMAC Currency Exchange Regulation).

Some of the new regulations includes the transfer, payment and settlement of routine business transactions are now subject to more stringent administrative control that is to say any transaction for an amount above 1 million CFA Francs (i.e. approximately 1,500 Euros) per month and per entity remains free subject to evidencing the origin of the funds to be transferred and the delivery of the documents requested by the certified commercial banks. Secondly, the opening of a current account in foreign currencies outside the CEMAC member States is now subject to an authorisation of the Bank of African States –BCAS.

Project financing is generally conducted on a non-recourse basis, meaning that the project revenues generated locally in CFA Francs are the only source of repayment for the lenders. Lenders are therefore very keen to secure such revenues and isolate them from a variety of risks, including onshore bank credit risk, enforcement risk (in the case of project company default), exchange rate risk, convertibility risk and transferability risk.

To minimize such risks, lenders usually require accounts to be opened offshore (for example in Paris or in London) and operated in a way permitting monthly conversion of project revenues into hard currency and transfer to such offshore accounts of the revenues not required to pay local currency costs.

The new provision requiring BCAS authorization for the opening of such offshore accounts means that the BCAS’s policies regarding the granting of such authorizations will be decisive as to the bankability of international energy and infrastructure projects to be developed in the CEMAC region.

More so ,the opening of a current account in foreign currencies inside CEMAC member States is now also subject to an authorisation of the BCAS . Meanwhile the obligation to repatriate exportation proceeds is maintained and no exception is provided which implies that New CEMAC Currency Exchange Regulation provides that exportation proceeds above 5 million CFAF (approximately 7,622 Euros) must be repatriated within 150 days¹ as from the exportation date.

The Director General of SCB Cameroun Mohammed Mejbar said these new regulations were good for the sub regions and will go a long way to foster the economy of the region. He remained hopeful that journalists will relay the information to the public for better understanding. Meanwhile the executive secretary of GICAM Alain Blaise Batongue  was around to outline the benefits of the new regulations. Different resource persons including Valentine Tchakounte, Achille Zogo Nkada each took turns to clarify journalists on certain issues concerning the new regulations.

By GINA ESONG

Reactions

_ “The new regulations is beneficiary to all member countries”

– Valentine Tchakounte- Financial Expert

 “With the new CEMAC regulations an individual can move with up to 5 million cfa  fiscal cash as oppose to the one million before.  The amount for online payment has been augmented and this has ease transactions within the region The new regulations that were put in place will benefit all member countries and all those doing business within the sub region have to stick to the rules”