An oil economy under the Central African franc

The Republic of the Congo is a member of 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. Oil accounts for the bulk of exports and government revenue, so the fall in oil prices from 2014 cut output, forced spending cuts, and led to arrears on public debt. With the IMF, the region's governments agreed to adjustment programmes in 2016 and the BEAC tightened policy to rebuild its pooled foreign reserves. Congo restructured part of its debt, including with commodity traders, and reached an IMF programme in 2019, after which higher oil prices in 2021 and 2022 helped it return to surplus. Because it has no independent monetary policy, the oil price cycle is the main driver of Congo's growth and fiscal series.