BEAC in Search of its Autonomy

Since the early 1990’s the Bank of Central African Countries (BEAC) has undertaken a series of important reforms. The purpose of this paper is to identify and understand them in light of the theoretical and empirical literature on central banks autonomy. First, we highlight the recent changes in the Franc zone which also governs the functioning of the BEAC. Second, we note changes that contribute to BEAC autonomy both at the institutional level and in terms of monetary policy. Third, we suggest: (i) an improved governance of the BEAC through better internal management and increased transparency of monetary policy; (ii) an improved governance of the Central African Economic and Monetary Community (CEMAC) by strengthening the regional integration process through improvements of business environment and through a better coordination between monetary and national fiscal policies prior to the establishment of an optimum currency area.