BEAC (BEAC)
The BEAC, the Bank of Central African States, is the single central bank of the six countries of the Central African Economic and Monetary Community (CEMAC). It issues the Central African CFA franc (XAF) and enforces the zone's foreign exchange regulations.
Also called: Bank of Central African States · Banque des États de l'Afrique Centrale
Headquartered in Yaoundé, the BEAC serves Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea and Gabon. It sets a single monetary policy, manages the pooled reserves of the six, and maintains the euro peg of the CFA franc.
The region's economies depend heavily on oil, so its reserves rise and fall with commodity prices. That has made the BEAC an active enforcer of exchange controls. Its foreign exchange regulation requires export proceeds to be repatriated, restricts foreign-currency accounts held abroad by residents, and requires documentary support for outbound transfers.
Payment businesses working in the zone should expect closer scrutiny of outward payments and longer processing times than the fixed exchange rate alone would suggest.
In practice
Banking supervision in the zone is carried out by a separate regional body, COBAC. BEAC approval and COBAC authorisation are not the same thing.
Commonly confused with
| Term | How it differs |
|---|---|
| BCEAO | The BEAC issues XAF for Central Africa. The BCEAO issues XOF for West Africa. Same peg, different central bank and different regulations. |
See also
- CFA FrancThe CFA franc is the name shared by two separate currencies used by fourteen African countries: the West African CFA franc (XOF) and the Central African CFA franc (XAF). Both are pegged to the euro at the same rate but are issued by different central banks.
- BCEAOThe BCEAO, the Central Bank of West African States, is the single central bank of the eight countries of the West African Economic and Monetary Union. It issues the West African CFA franc (XOF) and regulates banks, payment systems and e-money across the union.
- Central BankA central bank is the public institution that issues a country's currency, sets monetary policy, holds its foreign exchange reserves and acts as banker to commercial banks and the government. Most also run the core payment system and lend in emergencies.
- Export Proceeds RepatriationExport proceeds repatriation is a rule requiring exporters to bring their foreign-currency earnings back into the country within a set period, and often to sell some or all of them to local banks or the central bank for local currency.
- Capital ControlsCapital controls are government limits on moving money into or out of a country, or on converting its currency at the official rate. Imposed by a central bank or finance ministry, they determine whether a payment corridor is workable at all, and in which direction.