The new money issued by the Central Bank a few years back seems to have failed in achieving the results expected.

On two occasions, the Governor of the Bank of Central African States (BEAC), Jean Felix Mamalepot, signed two communiqués, each announcing the introduction of new money, banknotes in 2002 and coins in 2006 in the Central African Economic Community (CEMAC) sub-region. The main objectives for which such changes were brought into the CEMAC monetary system was to march with new global economic dispensation, ensure sustainability in the use of the new currency and respect the tradition (for banknotes) of manufacturing new money after every ten years.

But since new banknotes and coins were injected into the economy, there has been a lot of mixed feeling. Businessmen are irked by the fragile nature of the bank notes and the similarity between the different coins, especially in relation to old coins. The new CFA 500 coin is very much like the old CFA 100 while the new CFA 10 coin can easily be mistaken for the old CFA 5. The figures on the new CFA 1 and 2 coins are almost unreadable. Old people with poor visibility have complained of being unable to distinguish between the coins. Cases abound where passenger in taxi cabs payout CFA 500 to cab drivers in the name of CFA 100. The situation is worse for banknotes. They are considered by many as extremely fragile. Introduced into the mainstream of the economy in 2002, many banknotes are already showing signs of fatigue. Some have split into two as if they were carefully cut with a razor. Many that are in circulation today have been joined together with the use of cello tape.

Economists are deeply worried over this state of affairs. Certainly, the economy will be affected, knowing that BEAC authorities will have to wait for the next ten years to introduce new bank notes. By getting destroyed earlier than expected, the notes cease from circulating in the market. In basic economic terms, the whole principle of multiplier effect is disrupted and money that would have changed hands 200,000 times producing 200,000 more money, end up producing less. It is equally feared that the cost of producing such short-lived money might not be covered. In other words, the purpose for which new currency was printed has been defeated. Good money must be durable, portable and convertible. At this rate of degradation, will BEAC's new money respond to these qualities?