Bank of Central African States

Background

In 1920, the French government expanded the note-issuance privilege of the Banque de l'Afrique Occidentale to its central African colonies of Congo, Ubangi-Shari, Gabon, Chad, and later Cameroon. This arrangement was disrupted during World War II, as the colonies controlled by Free France became Free French Africa. The Caisse Centrale de la France Libre was established in London in December 1941 to manage the regional currency, and was renamed Caisse Centrale de la France d'Outre-Mer (CCFOM) in 1944.[3] The region's currency was standardized in late 1945 as the CFA Franc.

In 1955, the French government transferred the CCFOM's monetary role in the colonies of French Equatorial Africa to a new entity, the Institut d'Émission de l'Afrique Équatoriale Française et du Cameroun, which in 1959 was renamed the Banque Centrale des États de l'Afrique Équatoriale et du Cameroun (BCEAEC) after it became clear that the colonies would soon become independent nations.[4] The BCEAEC, headquartered in Paris,[5] acted as the new countries' joint central bank throughout the 1960s and early 1970s, similarly as its sister entity the BCEAO for the former colonies of French West Africa.

Establishment and development

On 1972-11-22, the five countries gathered in Brazzaville signed cooperation conventions between themselves and with France that formed the basis for their continued use of the CFA Franc, rebranded as standing for "Coopération Financière en Afrique" instead of "Communauté française d'Afrique".[6] Under these agreements, the BEAC was established to succeed the BCEAEC and manage the joint currency, with a convertibility guarantee provided by the French Treasury.[4] On 1973-02-01, the member states met in Fort-Lamy and decided to locate the new institution in Cameroon. The BEAC held its first board meeting on 1973-03-13 and started operations on 1973-04-02. The full transfer of head office activity from Paris to Yaoundé was completed in early 1977.[7]

Equatorial Guinea joined the currency arrangement and BEAC on 1985-01-01.[7]

On 1990-10-16, following similar reform pioneered by the BCEAO earlier the same year, the member states decided to pool their banking supervision and created the Central African Banking Commission (COBAC) for that purpose within the BEAC. On 1992-01-17, a follow-up agreement harmonized banking regulation in the region, paving the way for the effective establishment of the COBAC in January 1993.[8]

The BEAC's statutes were revised in late 1999,[7] and again in 2010,[9] to grant it greater independence.