Date: March 28, 2024
Time: 10:00 pm –03:00 pm (Cameroon time),
Venue: Djeuga Palace Hotel, Yaoundé (Hybrid Event)
By invitation only

Background

Francophone Africa is home to two monetary unions. The West African Monetary Union (UMOA) and the Central African Monetary Union (UMAC). The currencies of these two monetary unions are, respectively, the Franc of the African Financial Community (XOF-CFA Franc) and the Franc of the Financial Cooperation in Central Africa (XAF-CFA Franc). Each currency zone has a fixed exchange rate and limited capital mobility, and thus an independent short-term monetary policy in line with the Mundell-Fleming model. The monetary policies of the two central banks, the Bank of West African States (BCEAO), the issuing institution of the Economic Community of West African States (ECOWAS), and the Bank of Central African States (BEAC), the issuing institution of the Economic and Monetary Community of Central Africa (CEMAC), are unique and primarily aimed at maintaining price stability and supporting economic growth. However, the effectiveness of these two monetary policies remains weak, with market interest rates and inflation showing little responsiveness to the actions of these two central banks. What’s more, the transmission mechanisms of monetary policy remain limited, such as the shallowness of financial markets, the rigidity of inflexible interest rates, and the limited diversification of economies, despite the well-established institutional framework and appropriate instruments used by these central banks. In order to improve the contribution of monetary policy to the resilience of francophone economies, the Nkafu Policy Institute, a think tank of the Denis and Lenora Foretia Foundation, is organizing a stakeholders’ meeting on the theme “Providing Evidence-Based Policy Advice to Improve the Effectiveness of Monetary Policy in Francophone Africa.”

Objectives

The main objective of this workshop is to discuss strategies for strengthening the effectiveness of monetary policy in the franc zone. More specifically, the workshop will focus on
Ø The role of monetary policy in the development of the Franc zone
Ø The nature and importance of exogenous shocks in CFA-franc countries
Ø Analyze and assess the reforms put in place, especially their impact on monetary policy transmission mechanisms in the CFA franc zone.
Ø The reforms needed to strengthen the effectiveness of monetary policy decisions in CFA Franc zone countries.

Target audience

The meeting will bring together 20 experts on monetary policy and stakeholders from the following organizations: central banks, ministries of finance and economic planning from French African countries, commercial banks, investors, civil society organizations, academia, international organizations, experts, and observers from other regions and institutions.

Expected outcome of the event
At the end of the different sessions, participants would have acquired a firm understanding of the place of monetary policy in Francophone Africa, particularly the role of central banks in stabilizing economies. Participants will also have a good understanding of current challenges with the shared currencies at the macroeconomic level and possible reforms to enhance the impact of monetary policy on economic performance and the welfare of citizens.

Logistics

This stakeholder meeting will be a hybrid session. It will be live-streamed on the websites and social media platforms of the Denis & Lenora Foretia Foundation and the Nkafu Policy Institute. Simultaneous interpretation in English and French will be provided for the meeting. Documentation for the meeting will be sent electronically to online participants and shared physically with onsite participants. Lunch will be offered at the event venue for all confirmed stakeholders.

About the Nkafu Policy Institute

The Nkafu Policy Institute is an African think tank dedicated to the mission of providing independent, in-depth, and insightful policy recommendations that facilitate the prosperity of all Africans within free, fair, democratic, and sustainable economies. The Institute convenes leading analysts, experts, and contributors from around the world, specializing in the fields of governance and democracy, health and education, peace and security, science and technology, and economic policy. Its reputation is built on the values of independence, rigor, and innovation.

Contact

Email: [email protected] /
Tel: (+237) 654 86 72 54