The BEAC (Bank of Central African States) zone will begin issuing new coins. The region’s population will have access to them starting April 5, 2025. The region’s Governor, Yvon Sana Bangui, revealed this information during the recent Monetary Policy Committee (MPC) meeting held in Malabo, Equatorial Guinea.
Coins as a Support for the Economy
BEAC member nations are struggling with a lack of foreign currency, which complicates commercial transactions. To address this problem, financial officials and the Governor of the BEAC (Central African Republic) have decided to provide coins to the region. This ongoing initiative aims to ensure a generous supply of small coins and strengthen the economic integration of CEMAC member nations.
These existing coins will be available to the community starting April 5th. Among these new features is the addition of a new 200 CFA franc coin. At the same time, other coins are undergoing changes (growths) in terms of size, with the aim of making them attractive and acceptable to merchants. However, some coins have been retained and enlarged, such as the 25, 50, 100, and 500 CFA francs.
Advantageous Economic Outlook Compared to 2024
The introduction and distribution of new coins within the BEAC sub-region will have a transformative impact on the economy of the CEMAC zone. According to BEAC estimates, these factors are driving an expansion of 2.9%, compared to 2.6% the previous year. This will have a positive impact on inflation. Analysts predict a decline in this figure, from 4.1% in 2024 to 2.9% in 2025 for the BEAC.
For several years now, authorities have noted a gradual scarcity of coins in the CEMAC region. According to monetary authorities, the creation of export networks for certain coins is the cause, particularly to Asia, where they are melted down and fashioned into jewelry.
To combat these fraudulent activities, BEAC is opting to strengthen security around these coins. In particular, by creating a new product line, this time made from materials that do not correspond to those used in the jewelry sector. According to the governor of the central bank of the CEMAC countries (Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and CAR), all BEAC distribution centers have already been supplied.
“The metals and alloys used for this new range will ensure its security, compared to the export of coins we know in the region, because the alloys and metals (in the current range) have a much higher market value than the coins themselves. We have corrected this problem and hope that the new coins will be accepted by the population, this time with the innovation of the 200 CFA franc coin,” said the BEAC governor.
Reactions from Economic Stakeholders
The introduction of the new currencies has elicited mixed reactions from economic stakeholders in the region.
Governments: The governments of the member countries welcomed this initiative as a step towards economic modernization. Cameroon’s Minister of Finance stated that this would strengthen citizens’ confidence in the national currency.
Business : Business leaders expressed mixed feelings. Some believe it will facilitate transactions and reduce cash management costs, while others fear short-term disruptions to the transition process.
Citizens: The population is divided. Many enthusiastically welcome the new coins, hoping they will help stabilize the economy. However, some express concerns about the transition and the potential for confusion when using the old and new currencies.
