H.R. 2325, titled the Central African Exploitation and Manipulation of American Companies Act (CEMAC Act), would withhold United States support and influence at the International Monetary Fund (IMF) for actions related to member states of the Central African Economic and Monetary Community (CEMAC) until the IMF publicly clarifies that funds provided to BEAC (the CEMAC central bank) by international oil companies for site rehabilitation do not count toward those countries’ gross foreign exchange reserves. The bill directs the Treasury and the U.S. Executive Director at the IMF to oppose IMF actions that would increase IMF quotas for CEMAC members or alter its exceptional-access policy, and it creates a formal process for making and publishing the required determination. The findings describe concerns about BEAC’s restoration-fund regime, its potential to reduce oil-and-gas investment in the region, and the IMF’s role in clarifying what counts as reserves. In short, the bill uses the United States’ influence at the IMF to push for a specific interpretation of reserve eligibility for restoration funds and conditions U.S. engagement with IMF actions on CEMAC, with the aim of shaping investment and financial policy in Central Africa.
Key Points
- 1Withholding mechanism: The Secretary of the Treasury, in coordination with the U.S. IMF Executive Director and the Secretary of State, cannot vote to approve IMF actions related to CEMAC member states until a stated determination is made, and the Treasury must direct the U.S. IMF Executive Director to oppose IMF actions such as quota increases or changes to exceptional-access policies for CEMAC members.
- 2Determination trigger: The withholding and voting restrictions hinge on a determination that the IMF has publicly clarified that any funds provided to BEAC by international oil companies for site rehabilitation are ineligible to count toward the gross foreign exchange reserves of a CEMAC country.
- 3Publication and reporting: Once the determination is made, the Treasury must publish the determination and transmit it to congressional committees. If the determination is not made, Treasury must still report within 180 days (or 30 days after the determination is made) detailing actions taken by the U.S. government at the IMF to obtain the clarification.
- 4Policy basis: The bill states that funds paid by IOCs for restoration should be excluded from reserve counts based on IMF guidelines (Balance of Payments and International Investment Position Manual) and argues that clarity on this issue is essential for sound policy decisions by CEMAC countries.
- 5Legislative committees: The act designates the House Committee on Financial Services and the House Committee on Foreign Affairs, and the Senate Committees on Finance and Foreign Relations as the appropriate committees to receive reports and oversee implementation.