Emerging Markets Rates and Currencies Handbook

Gabon (XAF - Central African CFA Franc) Citi in Gabon Citibank established its presence in Gabon in 1976. There are 2 branches: Libreville branch in the capital of the City and Port-Gentil Branch which was opened 5 years later in the economic center where oil activities are concentrated. Citibank in Gabon is an investment bank focusing on corporates clients (GSG, NGO,TTLC, Public Sector, Banks). No retail banking and the bank remain the only foreign bank in the country. Market Overview The CFA franc (which is pegged to the Euro at 1€=655.957XAF) fluctuates against the US dollar in line with the Euro/Dollar exchange rate. Exchange rates for other currencies are derived from EURXAF. Main currency pairs are EURXAF and USDXAF. There is Regional FX Spot Market for the 6 countries sharing XAF as common currency. A revised Exchange control regulation was signed in December 2018 by all the Ministry of Finance of the Central Africa region. The new FX regulation is applicable to Oil and mining names since Jan 1st 2022 where oil and mining companies need to repatriate 35% of their export proceed. Over the past few years one of the main objectives of the Central Bank (BEAC) has been to increase FX reserves held at the Banque de France from 2.5 months coverage of imports in 2017 to 5 months as a target in 2022. Gabon is a member of the Economic and Monetary Community of Central Africa (CEMAC). In CEMAC, interest rates decisions are taken by the Bank of Central African States (BEAC)’ Monetary Policy Committee. The key policy rate has increased at 4% on March 28th 2022 is response to the strong oil price and lift of most of the covid 19 measures in all CEMAC countries. Convertibility There is Regional FX Spot Market for the 6 countries 91