Editorial: Reform FCFA, not only BEAC management.

A rotation ritual, the appointment was within the BEAC text that: “The Governor of the Central Bank is appointed by the Conference of Heads of State of the Economic and Monetary Community of Central Africa, CEMAC, on the proposal of the Ministerial Committee of the Union Monetary of Central Africa, UMAC, and after the approval by the Board of Directors of the BEAC ruling unanimously".

Those who know the new Governor say he "is a rigorous character, who practices participatory management. These are assets that leave no one indifferent".

In 2021, he was promoted to the position of Central Director of Accounting, Budget and Management Control at BEAC. 

In that capacity, he was the de-facto Rapporteur of the General Budgetary Commission of the Subregional institution; and "thus became the interlocutor of the two control bodies which are: the Audit Committee and the College of Censors”.

Yvon Sana Bangui is an economic engineer, educated in Morocco and France. He holds a Bac+4 in Applied Mathematics, a Diploma in Computer Science and Telecommunications, as well as two Masters in Economics and Public Management. 

He joined BEAC in 2005 and gradually occupied several positions.

But his opponent say he is more a "computer scientist" than a banking technocrat for an institution he will inherit "internal quarrels, controversies, dysfunctions...”. 

BEAC has lately been so much in the news. Alas, the situation has gotten even worse since the CEMAC Conference of Heads of State in March, [last year].

The Heads of State expect the new Governor in his reforms “to place his actions within the framework of transparency in management and strengthening collegiality in decision-making".

But the most important reforms will be if his management will reform, if not dump the FCFA.

The Heads of State of the Economic and Monetary Community of Central Africa met in Yaounde, on March 17, 2023, and opted for a gradual revision of the monetary cooperation framework with France. 

But on the merits of the matter, they asked to continue at ministerial level the reflection initiated by the CEMAC leaders.

Indeed, after following the restitution of the “in-depth reflection,” entrusted to the Governor of the Bank of Central African States, Abbas Mahamat Tolli, and to the President of the CEMAC Commission, Daniel Ona Ondo, in November 2019, the Heads of State prescribed "to broaden the reflection to the minister in charge of finance and the economy" and to "submit to them the joint conclusions in the short term, by planning according to a precise timetable, the measures to be taken in the short, medium and long term”.

From sources close to the matter, the reforms that could be implemented in the short or medium term are those similar to the measures taken within the West African Economic and Monetary Union (UEMOA), which also uses the FCFA.

This involves the change in the denomination of the currency, the closure of the operating account in the books of the Banque de France in order to allow CEMAC to have access to all of its foreign exchange reserves compared to 50% currently and the withdrawal of the French representatives within the decision-making and control bodies of the BEAC.

Considered more delicate, measures such as the attachment of the FCFA to a basket of currencies, if they are retained at the end of the reflection, should be implemented in the long term, as experts recommend.

His appointment does not go without comment if he can implement any monetary reforms. A BEAC executive, for example, quoted in the media without disclosing his identity, questions if the new Governor's knowledge of economics and monetary issues would give him the liberty to carry out reforms within the institution, most of which will however depend on the political will of Heads of State, rather than the CEMAC Zone.

From various academic and research studies, France is however unwilling to reform the currency, which will be to its economic disadvantage. 

It is therefore left for the Heads of State of CEMAC to take their independence sovereignty into their hands and reform the Franc, which remains a colonial noose or create their own currency, not just reforming the management of BEAC.