Central African franc (XAF) Exchange Rates & Currency Deals

Bias EUR/XAF remains range-bound near the 90-day avg, drifting toward the middle of the 3-month range. ECB stays cautious/neutral while BEAC tightens, widening the policy gap. Oil volatility and Camon's 2026 deficits cap gains for the euro. Key drivers - Rate gap: The ECB holds a cautious, neutral stance with steady policy, while BEAC has tightened to defend reserves, widening the gap between the two central banks. - Oil: Oil stays above its average and remains volatile, keeping energy costs and inflation risks in Europe elevated and limiting euro strength. - Macro factor: Cameroon’s 2026 budget deficit concerns add fiscal sustainability risks, weighing on euro-area growth and the euro. Range The pair is likely to stay within the recent 3-month range, with a gentle drift toward the middle. What could change it - Upside risk: A hawkish ECB shift or stronger euro-area data could lift the euro and push EUR/XAF higher. - Downside risk: BEAC signaling slower tightening or an improved reserve outlook could strengthen the CFA franc and weigh on EUR/XAF