Here is the converted article in Markdown format:
Central African Economic and Monetary Community Regulates Foreign Exchange Transactions
The Central African Economic and Monetary Community (CEMAC) has implemented new regulations governing foreign exchange transactions to ensure the stability and security of its financial system.
Reporting Requirements
According to Article 32 of the CEMAC Regulations, all external transactions must be reported to the Central Bank and relevant administrative authorities. The reporting requirements are specified in an Instruction issued by the Central Bank.
- All external transactions must be reported to the Central Bank and relevant administrative authorities.
- Reporting requirements are specified in an Instruction issued by the Central Bank.
Electronic Payment Instruments
The regulations also stipulate that electronic payment instruments used outside CEMAC are treated as transfers and manual exchange, subject to specific conditions and thresholds (Article 34).
Credit Institutions
Credit institutions are required to:
- Transfer foreign currencies held by clients to their domiciliary credit institution within two working days of receiving the request (Article 35).
- Mandate residents to transfer income or proceeds received in foreign currency abroad to their domiciliary credit institution (Article 37).
Foreign Currency Retrocession
The Central Bank is responsible for retroceding foreign currencies collected by credit institutions, with the exception of a proportion that may be retained by credit institutions to meet current foreign exchange needs of their customers (Article 38). The conditions and modalities of foreign exchange retrocession are specified in an Instruction issued by the Central Bank.
Restrictions on Foreign Currency Accounts
The regulations prohibit residents from opening foreign currency accounts outside CEMAC, with the exception of credit institutions. However, the Central Bank may authorise a resident legal entity to open a foreign currency account outside CEMAC under specific conditions and procedures (Article 41).
- Residents are prohibited from opening foreign currency accounts outside CEMAC, except for credit institutions.
- Credit institutions or residents may be authorized by the Central Bank to open foreign currency accounts outside CEMAC.
Non-Resident Accounts
The regulations allow non-residents to open accounts in foreign currency in CEMAC, subject to ex post information from the Central Bank. Transactions to debit and credit these accounts are free, provided they comply with existing regulations (Articles 46-47).
- Non-residents may open accounts in foreign currency in CEMAC.
- Transactions to debit and credit these accounts are free, as long as they comply with existing regulations.
Consequences of Loss of Non-Resident Status
The loss of non-resident status automatically results in the closure of the relevant account (Article 50).
These regulations aim to strengthen the financial stability and security of CEMAC member states by regulating foreign exchange transactions and ensuring the efficient management of foreign currencies.