Cameroon is part of the Central African Monetary and Economic Union (Communaute Economiquareue et Monetaire de l'Afrique Centrale, or CEMAC), a group of 5 francophone countries that use the same currency, the CFA franc. The CFA franc is tied to the French franc and can be readily exchanged at 50 CFA francs to 1 French franc. Cameroon, like all members of the CFA franc communities, has benefited from this stable currency.
As a member of the CFA zone, Cameroon was profoundly affected by the 50 percent devaluation of the CFA in 1994. The devaluation caused a temporary rise in inflation to nearly 30 percent in 1995 before descending to around 2 percent in the late 1990s. The country's economy appears to have benefited from this de-valuation, which made its traditional exports more competitive on world markets. In the short term, however, devaluation lowered living standards and probably increased poverty by raising prices while most salaries remained static.
CEMAC planned to open a regional stock exchange in Libreville, Gabon, in 2001, despite the existence of a limited stock exchange in Douala.
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