UMAC, the Monetary Union of Central Africa explained

UMAC: definition and six member states

The UMAC (Monetary Union of Central Africa) is the monetary union of the CEMAC, which brings together Cameroon, the Central African Republic, Congo, Gabon, Equatorial Guinea and Chad. It rests on a convention that entrusts it with a common currency, the Central African CFA franc (XAF), issued by a single note-issuing institution, the BEAC, and with harmonised banking regulation.

The four institutions of the UMAC

The convention lists four: the Conference of Heads of State, the Ministerial Committee, the Bank of Central African States, the common note-issuing institution, and the Central African Banking Commission. The heads of state set the broad guidelines; the Ministerial Committee ensures that economic policies are consistent with the common monetary policy.

The convention aims at harmonious economic and social development within an open market and a suitable legal framework. It also provides for the harmonisation of banking regulation and of its supervision, entrusted to the COBAC.

How the Ministerial Committee works

Each state is represented there by its finance minister, who has one vote. Decisions are taken unanimously or, failing that, by a five-sixths majority, and some require unanimity.

The Committee reviews the economic policy guidelines of the states, oversees the application of the convention and proposes the necessary adjustments to the heads of state. It also decides on increases or reductions in the capital of the BEAC, ratifies its annual accounts and determines the creation, issue and withdrawal of banknotes and coins. In December 2024, it adopted the regulation on the single banking licence in the zone.

Common monetary policy of the UMAC

The main objective of the BEAC is monetary stability, and it supports the general economic policies of the states. Its Monetary Policy Committee, chaired by Governor Yvon Sana Bangui, sets the policy rates.

At its session of 29 June 2026 in Yaoundé, it lowered the tender rate from 4.75% to 4.50% and the marginal lending facility rate from 6.25% to 5.75%, while keeping the deposit facility at 0%. Reserve requirement ratios were cut from 7.00% to 6.50% for sight liabilities and from 4.50% to 4.00% for term liabilities. At its session of 28 September 2026, held in Yaoundé, it kept these rates and ratios unchanged, with inflation at 2.2% on an annual average, below the community threshold.

CFA franc, fixed parity and convertibility guarantee

The Central African CFA franc is pegged to the euro at 655.957 francs to the euro. According to the Banque de France, the French Treasury guarantees its convertibility and provides advances, without condition or ceiling, if the central bank exhausts its foreign exchange reserves. The convention ties this guarantee to an annexed monetary cooperation agreement, and the definition of the CFA franc can change only after consultation of the member states and of France.

The UMAC should not be confused with the WAMU, the West African monetary union founded on a separate treaty and with its own central bank, the BCEAO. The XOF and the XAF are two distinct currencies, each with a fixed parity to the euro.