The recent decision of the Bank of Central African States (BEAC) to issue bonds in local currency (CFA Franc) opens up new prospects. Professionals and partners are impatient.
First to announce the color, the International Finance Corporation (IFC). The World Bank Group’s private sector affiliate organized a sub-regional workshop on capital markets in Central Africa on 17 and 18 September, reports the Cameroon Financial Market Commission (CMF) newsletter. .
In Africa, the IFC has already issued issues in local currency, including Cameroon in 2009 (7.5 billion CFA francs), Nigeria (Naira) and Rwanda.
The work, in which the Financial Markets Commission of Cameroon took part, was devoted on 17 September to the institutional, regulatory and strategic context of capital markets in Central Africa. The day of September 18th was dedicated to the technical aspects and the sharing of experiences by practical cases.
The issue of local currency bonds has the advantage for the issuer, State or international institution, of not being exposed to the exogenous shocks of using a currency (foreign currency), particularly in the case of fluctuation in the exchange rate with the local currency.
Source: CMF
