(Ecofin Agency) - Gabon and Chad contributed the most to the foreign exchange reserves of the Central African Economic and Monetary Community (CEMAC) in 2024. Data from the Bank of Central African States (BEAC) shows that the region’s net current account balance remained positive at 6.8% of GDP, despite dropping from 7.9% in 2023. Chad’s balance also declined, reaching 3.3% of its GDP.

This means that, compared to other countries in the region, Gabon and Chad spent the least of the foreign currency their economies generated. The current account balance is a more accurate measure of a country’s net foreign currency position than just trade figures, as it includes not only goods and services but also payments like dividends, interest to investors, and cross-border money transfers.

In contrast, other CEMAC countries ran deficits. Cameroon’s deficit improved but remained negative at -2.9% of GDP, compared to -4.3% in 2023. Congo, a key oil exporter in the region, used up all its foreign currency earnings and more, recording a -10.3% balance. The Central African Republic reported a -10.8% deficit, while Equatorial Guinea’s gap widened to -5.2% of GDP.

The figures are important because, in December 2024, Gabon and Chad were criticized for not having IMF-backed economic programs, which are intended to support CEMAC’s financial reforms. They were also blamed for the region’s foreign reserves covering only 4.3 months of imports—falling short of the IMF’s recommended five-month minimum for resource-dependent economies.

Gabon’s decision to refinance part of its Eurobond, which required foreign currency payments, sparked debate in the media and political circles. In Libreville, officials argued that these payments were unavoidable and that the borrowed funds had, at some point, strengthened the region’s reserves.

As a shared economic and monetary zone, all six CEMAC countries contribute to and rely on common foreign exchange reserves. These reserves collect foreign payments directed to the region and its economic players while also serving as a source for external payments.

With declining oil production and the region’s largest and most diverse economy, Cameroon is the main user of these reserves, excluding IMF assistance. Meanwhile, Congo and Gabon, which export large volumes of oil relative to their populations, are the biggest contributors in terms of external revenue.

The final 2024 figures also shed new light on the December 19 emergency summit of CEMAC heads of state in Yaoundé. They help explain Gabon’s silence on the issue and the slight frustration shown by Chad’s economy minister during the ministerial meeting, which was open to Cameroon’s press.

By the end of 2024, CEMAC’s foreign reserves still fell short of covering five months of imports. However, its external position improved, with a positive balance of CFA202 billion in foreign transactions. Including debt repayments and write-offs, total reserves increased by CFA455.1 billion.

Although some repayments remain due, the reserves, which are held in the operations account at the French Treasury under CEMAC’s monetary cooperation agreements, continue to generate interest for BEAC. More importantly, the data suggests that public criticism of Chad and Gabon may have been too harsh.