CEMAC CFA FRANCS IN CRISIS: understanding yaounde meeting

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By: NTUNTIH SMITH Mohbambu

Cameroon is faced with the dilemma of either adopting a new currency, Adopting structural readjustment plans or adopting a devaluation on her currency which has been on a continuous drop in value and in exchange. This explains the extraordinary CEMAC session which held recently in Yaounde with the representation of Christine Largarde the G.M of the international Monetary Fund and others from the French economy. The imminent problem happen to be a poor circulation of commercial activities within the CEMAC zone as Visas are needed before trade can be eased especially with countries like Equatorial Guinea which intends to trade in other countries but dont want other countries to in it in a defense she uses PREVENTING IMMIGRATION BECAUSE OF SMALL SIZE AND SMALL ECONOMY.

However devaluation was kicked out of the negotiation table and Structural Readjustments adopted by the six different head of states of the CEMAC sub region. This adoption has cause the population to be Skeptical as some people of the public sector may end up working for close to five years without any change of salary likewise those of state parastatals while the private sector businesses may witness a drop in their profit margins due to an increase in direct and indirect taxes which will consequently cause an increase in price.

The CEMAC region in the year 2014 had a growth rate of 4.8% while in 2015 they had 2.8% and the anticipated for 2016 is 1.7% with the immediate cause being Capital flight as CEMAC countries have more extensive trade with non CEMAC countries. This is because some are unwilling to liberate their borders for free trading particularly Equatorial Guinea while statistics shows that Cameroon is the bread basket of this region as every day the Bota, Idenau, Ekok, and Ekondotiti wharfs and even the Douala port witness high exportation of food stuff and other raw materials to Gabon, Chad, Equatorial Guinea, Central African Republic and even Congo. So if CEMAC countries are to depend solely on themselves how will the region look like?. All this explains why Breaking Cameroon into two is almost an impossibility, Since CEMAC is dependent on Cameroon and Cameroon is dependent on Southern Cameroon thus CEMAC is dependent on Southern Cameroon.

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Lucas is the CEO and founder of Tebopos.com, he is a UB trained compute software engineer with a passion for critical writing and political analysis, reason why he created the blog tebopsost. Mbah has a good sense of leadership and is result oriented person committed in sharing information relevant to people in order to help them make informed decisions about their life. He is the Editor of the webiste website TeboPost.

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