An oil pipeline and a debt restructuring

Chad belongs to the Central African Economic and Monetary Community and uses the CFA franc issued by the Bank of Central African States (BEAC), pegged to the euro. Its economy changed in 2003, when a pipeline to the Cameroonian coast began to carry Chadian oil to export markets, and oil quickly became most of exports and a large share of government revenue. The fall in oil prices from 2014 caused a debt crisis and a deep fiscal adjustment, and in 2021 Chad became the first country to request a debt restructuring under the G20's Common Framework, with an agreement reached in 2022 with the support of an IMF programme. With monetary policy set regionally, the adjustment fell on the budget and on growth, which is why Chad's output series moves closely with oil prices and its own debt episodes.