Foreign exchange reserves: CEMAC breathes again… on credit?
After a difficult 2025, the zone's foreign exchange reserves are rising. But the improvement relies largely on money borrowed abroad by governments. A look at a key indicator for the stability of the CFA franc.
Translated from French. Lire en français
What are foreign exchange reserves for?
Foreign exchange reserves are the foreign currency, gold and special drawing rights (SDRs) held by the BEAC. They pay for the zone's imports and guarantee the stability of the CFA franc against the euro. They are often measured in "months of imports": how long the zone could keep importing with that stock.
A roller coaster in 2026
At the end of February 2026, reserves had fallen to 6,769 billion FCFA, down 10.1% year on year. The causes: rising imports and heavy external debt repayments. This concern had led heads of state to hold an extraordinary summit in Brazzaville as early as January.
The trend then reversed. At the end of August 2026, reserves reached 7,125 billion FCFA, 4.7% more than a year earlier. The BEAC projects coverage of about 4.5 months of imports at year end.
A recovery that raises questions
The improvement is mainly due to two factors: governments' external borrowing and firm hydrocarbon prices. In other words, part of the foreign currency boosting reserves will have to be repaid later.
Moreover, 4.5 months of imports remains below the 5-month threshold generally considered comfortable. The zone therefore remains exposed to a reversal in oil prices or tighter international financing conditions.
Levers to strengthen them
The BEAC and governments are relying on several levers: effective repatriation of export earnings, especially from oil and mining; fiscal discipline under IMF programmes; and diversifying reserves with gold produced in the region. The real strength of reserves will depend on generating foreign currency through exports rather than debt.
Key figures
- Reserves at end-February 2026: 6,769 billion FCFA (-10.1% year on year)
- Reserves at end-August 2026: 7,125 billion FCFA (+4.7% year on year)
- Projected coverage: about 4.5 months of imports (comfort threshold: 5 months)
- Published on:
- Wednesday, 28 October 2026
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