Cameroon – Currency Crisis: Tension Mounts Between BEAC and Local Banks.

Par Kiven B. NSODZEFE | Cameroon-Info.Net
DOUALA - 18-May-2019 - 09h58   4534                      
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Photoshoot to Crown Session with BEAC, GICAM and APECCAM officials Archives
An uneasy calm now reigns between commercial banks in Cameroon and the Bank of Central African States(BEAC), with the later accused of collecting over FCFA 1Billion yearly on services rendered to local banks.

This was revealed by the President of the Cameroon Bankers Association(APECCAM), raised this concern during the ordinary session of the Cameroon's Employers Organisation(GICAM) on Thursday May 16 in Douala.

Mr. Alphonse Nafeck said due to the fact that exchange transactions take longer and complicated procedures, some banks who bought currency from else where without informing BEAC, only went back to realise the central bank has debited their accounts of huge sums of money.

He accused the central bank of working to the disadvantage of local banks, and has been implementing dispositions of the new exchange laws without consulting these companies.

“The Central bank takes a decision, set a deadline without informing others, and execute all on its on”, said Mr. Nafeck
GICAM's president, Celestine Tawamba was also concerned about this crisis, where he raised it in his opening address, in the presence of government’s representation, the Minister of Trade, Luc Magloire Mbarga Atangana.

He expressed regrets that the implementation of the new exchange regulations some months ago, and despite the assurances given by the BEAC as to the availability of foreign exchange, business persons have rather been facing a rationing of currencies.

Mr. Tawamba explained that the rationing often took 2-3 days and sometimes weeks or several months.

“ In addition, there are additional costs related to transfer fee rates, currency purchase rates and various bank charges. Finally, the procedures have become longer and more complex, and companies are often required to produce voluminous documentation. This, moreover, suggests delaying tactics in order to save time with the consequent lengthening of payment terms. In the end, it is outstanding transfers from banks that accumulate, totaling even several billion CFA francs for some companies”, cried GICAM's boss.

During the first week of April, GICAM and APECCAM held a working session on the new exchange rate laws, in the presence of the deputy governor of BEAC. BEAC’s representative while reacting to concerns raised by commercial banks said the laws implemented weren’t new to them and wasn’t as complicated like it seemed.

“We are witnessing a sort of ping-pong game in which both the commercial banks and the BEAC are blaming themselves for these malfunctions. If one can understand the motivations that justified the setting up of this new regulation - struggles against terrorism and money laundering, the obligation of repatriation of currencies by the banks -, the fact remains that its application is an obstacle to the deployment of economic activity given the adverse effects: slowdown in business activities, loss of credibility with foreign suppliers, threats to country risk, which constantly run the risk of a devaluation of FCFA”, regretted Mr. Tawamba.

Stakeholders solicited the Minister of Trade, to take their concerns to the highest authority of the country, so that they can continue cordial ties with the central bank.

 

Auteur:
Kiven B. NSODZEFE
 @T_B_D
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