The official
Cameroon currency is Communaut Financiaire Africaine Franc. It is represented by the symbol CFA franc. The same currency is used in Central African states and 14 West African nations. The Cameroon currency as legal tender is issued by the Bank of Central African States. Even though, CFA franc banknotes and coins belonging to Central Africa and CFA franc coins and banknotes belonging to West Africa share similar monetary values, the CFA franc of central Africa cannot be used in West African states and vice versa.
Due to the stable nature of the Cameroon currency, Cameroon benefits immensely, similar to the other nations sharing the CFA franc. The economy of Cameroon was affected in the year 1994, by the devaluation of CFA franc. The devaluation resulted in short lived escalation of the inflation rate. However, devaluation proved to be an advantage for the economy of Cameroon. The reason being, devaluation led to an increase in competition of traditional export products in the global market. Adversely, devaluation led to lower standards of living by escalating the costs, whereas salaries remained the same. This may have in turn elevated the poverty level in the country.
Exchange rate of Cameroon currency:
Cameroon belongs to Central African Monetary and Economic Union or Communaute Economiquareue et Monetaire de l'Afrique Centrale (CEMAC). It consists of five countries, sharing the same currency. As Cameroon is a member of Communauté Financière Africaine, it cannot use nominal exchange rate as an instrument to bring about adjustment in the macro economy.
