Manual currency exchange is a crucial tool for the fluidity of international financial transactions and the smooth functioning of the foreign exchange market in the CEMAC zone. It consists, regardless of the medium used, of the purchase or sale of foreign banknotes or traveler’s checks against CFA Francs. To ensure the transparency and regulation of this sensitive sector, the practice of manual currency exchange is governed by foreign exchange regulations, notably the Regulation of December 21, 2018 and the Instructions of June 10, 2019. Within this framework, only a duly constituted and authorized legal entity may habitually carry out this activity in Cameroon and in the CEMAC zone.

1. Entities Authorized to Conduct Manual Currency Exchange Operations

The following are authorized to carry out manual currency exchange operations:

• credit institutions;
• microfinance institutions;
• postal administrations;
• currency exchange offices.

However, in the context of foreign currency purchase operations from customers, credit institutions may grant sub-delegations to certain entities, including hotels, travel agencies, airport shops, and casinos, which, due to their activities, receive foreign currency payments from foreign travelers. Credit institutions shall notify the Central Bank of the sub-delegations granted to eligible entities.

2. Obligations

Entities authorized to conduct manual currency exchange operations are required to:

• serve their customers within the limits of their foreign currency availability and foreign currency allocation thresholds;
• verify the compliance of supporting documents presented by customers;
• report to the Ministry in charge of currency and credit, the Central Bank, and COBAC, according to the procedures stipulated in this Regulation and in subsequent texts.

3. Sanctions

Infringements of obligations related to the exercise of manual currency exchange activity, including the exercise or continuation of manual currency exchange activity without authorization, are punishable by a fine of 5 million CFA Francs, accompanied by the immediate surrender of foreign currency to the Central Bank. Furthermore, offenders may incur non-pecuniary sanctions such as warning, reprimand, prohibition from carrying out certain transfer operations, suspension of activities, suspension or revocation of the manager, temporary closure, suspension or withdrawal of authorization or license.

4. Regulatory References

For more details, refer to the following current texts:

1. Regulation No. 02/18/CEMAC/UMAC/CM of December 21, 2018, concerning foreign exchange regulation in CEMAC member states;
2. Instruction No. 011/GR/2019 of June 10, 2019, relating to the conditions for exercising manual currency exchange activity;
3. Instruction No. 009/GR/2019 of June 10, 2019, relating to the status of a sub-delegated institution within the framework of manual currency exchange activity.