(Ecofin Agency) - A new piece of legislation, known as the "CEMAC Act," is drawing attention to the management of foreign reserves in Central Africa’s six CFA countries—Cameroon, Gabon, Chad, Congo, Central African Republic, and Equatorial Guinea. The bill specifically urges the International Monetary Fund (IMF) to hold these countries accountable for the transparency of their reserves, particularly the funds dedicated to environmental restoration, which are provided by multinational oil companies.

In 2018, the Central Bank of CEMAC (BEAC) introduced regulations requiring extractive companies to establish restoration funds for rehabilitating exploited sites. Recently, BEAC set a deadline of April 30, 2025, for oil companies to sign an agreement regarding these funds, with penalties potentially reaching 150% of their contribution to the restoration fund if they fail to comply by May 1, 2025.

The BEAC say its move is aimed at rebuilding the region's foreign reserves and ensuring external stability, as CEMAC’s import coverage is only at 4.8 months, a level far below the IMF's recommended minimum of five months.

The main concern raised by U.S. lawmakers is the BEAC’s refusal to waive its sovereign immunity in the event of mismanagement of these reserves. The legislators argue that the IMF is also at fault for not addressing this issue, especially since BEAC positions itself as a custodian of these funds.

In support of their position, U.S. officials cite IMF guidelines, which state that for resources to be classified as foreign reserves, they must be readily available and controlled by a country. According to these officials, the restoration funds fail to meet these criteria.

The latest data on CEMAC’s foreign reserves shows a slight increase, reaching CFA 7,584.9 billion by the end of 2024, according to IMF documents. While these figures might seem reassuring, the IMF has urged BEAC to keep interest rates high in order to effectively combat inflation within the region.