Equatorial Guinea is a small open economy which initially continued to fix its currency to that of its previous coloniser, Spain. This did not work out well, and it chose instead to join the central African CFA franc zone (with whose members it shares borders) in 1985.
|Years||Targets and attainment||Classification|
|1974-77||Equatorial Guinean peseta first issued 1969 (independence from Spain 1968), fixed to Spanish peseta; initially central bank and state-owned commercial+development bank, 1977 all banking consolidated in central bank, 1979 commercial+development bank re-established, 1980 new commercial bank (partly foreign- and partly state-owned); reserve requirements only instrument in use; economic decisions highly centralised but effectiveness limited by lack of skills and of imported inputs; fiscal wastefulness and dominance, gradual demonetisation, administrative weaknesses, economy contracts; 1975 EG peseta replaced by ekuele, also at par with Spanish peseta, but does not follow Spanish devaluation 1977; statistical data very poor||augmented exchange rate fix AERF|
|1978-84||initial arrangement unclear, April 1979 peg to SDR within 2% margins announced; 1979 coup, new government aims to stabilise and reform; August 1979 ekuele pegged at par to Spanish peseta then devalued by 50% mid-1980; 1981 ekuele replaced by ekwele; gradual remonetisation, with instruments now including rediscount facilities and some credit controls; ongoing excessive domestic credit growth; active parallel market with very high discount on ekwele; by 1983 further economic deterioration and low administrative capacity lead to idea of joining CEMAC, agreement in principle May 1983 with details July 1984; membership January 1985, involving currency conversion (with devaluation), demise of central bank, move to BEAC monetary instruments; statistical data still poor||unstructured discretion UD|
|1985-2017||member of central African CFA franc zone, see Central African Economic and Monetary Community; country-specific banknotes are issued but they are legal tender throughout the union; national monetary committee has some say over credit allocation and banking conditions within country, but there is no national monetary policy||member of currency union CU|
Selected IMF references: RED 1973 pp37-42; SR 1979 pp2-3, 5-6; RED 1981 pp24, 38; SR 1981 pp8-10; RED 1983 pp41; SR 1983 pp1-5; RED 1984 pp49; SR 1984 pp1-7; RED 1986 pp36-7, 59.