The Stears Weekly Macroeconomic Report highlights the macroeconomic trends and policy shifts shaping the African investment landscape, helping you make informed decisions in dynamic markets.
Country Updates
Cameroon
- Foreign Exchange: The Central African CFA Franc (XAF) depreciated by 0.3% w/w to close at FCFA635.1/$, continuing its downward trend for the second consecutive week as the US dollar strengthened, driven by tariff threats and escalating trade conflicts. The XAF's weakness is also influenced by the Euro's (EUR) softening, amid strong expectations that the European Central Bank (ECB) will continue to gradually reduce interest rates, with Eurozone Retail Sales declining by 0.2% m/m in December, exceeding the estimates of 0.1% drop. The continued resilience of the U.S. economy and President Donald Trump's potentially inflationary tariffs and tax-cut policies have dampened expectations for further Federal Reserve rate cuts, indicating a wider eurozone-US interest rate gap and likely exerting pressure on the XAF in the near term.
