BEAC standing in French for “La Banque des Etats de l’Afrique Centrale” is the Bank of Central African States. Created in 1972, this central bank is common to the 6 countries which comprise the CEMAC (Economic and Monetary Community of Central Africa) region. These countries are Cameroon, Equatorial Guinea, Central African Republic, Chad, Congo, and Gabon. BEAC has as missions are to:
- establish and implement CEMAC’s monetary policy;
- provide fiduciary money (coins and banknotes that are legal tender in the CEMAC);
- to implement the CEMAC’s foreign exchange policy;
- hold and govern the foreign official exchange reserves of its member states;
- stimulate the proper functioning of settlement and payment systems;
- boost financial stability.
To guarantee the economic stability of the CEMAC zone, the Central Bank puts at the reach of the COBAC (Banking Commission of the States of Central Africa), the human, material, and financial resources required for the implementation of its banking supervision mission. The BEAC also consolidates frequent and effective relations with international partners, making it a benchmark financial and monetary organization.
Key figures that define the BEAC
- Creation: 22nd November 1972
- Member countries: 6 (Cameroon, CAR, Chad, Congo, Equatorial Guinea, and Gabon)
- Business capital: 88 billion CFA francs
- Headquarters: Yaounde – Cameroon
- Human resource: 2,629 employees from its 6 member states (as of September 1st, 2016)
- Governance: A government composed of 6 members representing each of the 6 CEMAC states. All members: the Governor; the Vice-Governor; the Secretary-General and three Director Generals are appointed for a non-renewable term by the Conference of Heads of States. Aside from BEAC’s government, it also has 2 directors per member state and 2 representing France which makes up the 14 members board of directors.
- Representation: besides its headquarters known as “Central Services”, the BEAC has 21 centers distributed over the 06 member states, alongside an external delegation in Paris – France.
How does the BEAC function?
Below are the various bodies and structures that participate in the management, administration, and control of the Bank.
- The Ministerial Committee of UMAC: this organ is governed by the Central African Monetary Union Convention. Its role is to examine the main orientations of the economic policy of member states and ensure consistency with monetary policy.
- The Board of Directors: comprised of 14 members as earlier mentioned, the board is in charge of the bank’s administration and oversees its efficient functioning.
- The Monetary Policy Committee: in matters of management of foreign exchange reserves and monetary policy, it is the body in charge of the decision-making of the BEAC.
- The National Monetary and Financial Committee: this committee is set up within the National Directorate of the Central Bank in each member country. Within the limits of the power handed to it, the committee is in charge of examining the general financing needs of the member state economy.
- The Government of The Bank: it is composed of 6 members: the Governor, the Vice-Governor, the Secretary-General, and 3 Director Generals. In compliance with statutes, international conventions, treaties, regulatory texts, and laws, the government ensures the daily management and direction of the Central Bank.
- The College of Censors: the College is made up of 3 sensors with 1 appointed by France appointed for a 3 years term of office. It oversees the execution of the Bank’s budget and proposes recommendations to the Board of Directors.
- The Audit Committee: among its missions are the supervision and examination of the control system of the bank and the analysis of internal annual control reports.
Currently, under the reign of Abbas Mahamat Tolli who is the governor of the BEAC, this international and benchmark financial institution is compelled to carry out its services to the best of its capacity to ensure financial stability in the CEMAC zone.
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