The Bank of Central African States (BEAC) indicated in its analysis note published on Monday that the nominal effective exchange rate of the CFA franc should show a downward trend against the US dollar in the first quarter. 2022.

The depreciation of the sub-regional currency in relation to the currencies of the main partners and suppliers is attributable to the fall in the euro which is the anchor currency of the zone in relation to the main currencies, in particular vis-à-vis of US currency. This projected trend would reflect the widening short-term interest rate differential between the euro area and the United States, driven by higher inflation in the latter and the policy trajectory American currency. In line with the trends observed in the fourth quarter of 2021, the Central Bank forecasts a strengthening differential in inflation favorable to the Economic and Monetary Community of Central Africa (CEMAC).