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) strengthened, building on last week's 0.3% gain by appreciating 1.5% w/w to end the week at FCFA629.1/$. The XAF gained as the Euro gathered bullish momentum on upbeat Composite Purchasing Managers' Index (PMI) data from Germany and the Eurozone. However, the EU economy remains sluggish compared to the US economy. This could result in the ECB cutting its key rate more rapidly than the U.S. Federal Reserve lowers borrowing costs, putting additional pressure on the XAF in the near term
- Liquidity demand: On January 21, the Bank of Central African States (BEAC) injected CFA230 billion into the Economic and Monetary Community of Central Africa (CEMAC) banking system, following requests totalling CFA258 billion. Cameroon, the region's largest economy,
