Viewing cable 07CONAKRY1238
Title: CENTRAL BANK REVEALS RESERVES, REFORM PROGRESS, AND A NEW

IdentifierCreatedReleasedClassificationOrigin
07CONAKRY12382007-11-14 13:58:00 2011-08-30 01:44:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Conakry
VZCZCXRO6046
RR RUEHMA RUEHPA
DE RUEHRY #1238 3181358
ZNR UUUUU ZZH
R 141358Z NOV 07
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC 1871
INFO RUEHZK/ECOWAS COLLECTIVE
UNCLAS CONAKRY 001238 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12598:  N/A 
TAGS: ECIN EFIN ECON EMIN GV
SUBJECT: CENTRAL BANK REVEALS RESERVES, REFORM PROGRESS, AND A NEW 
MONEY LAUNDERING LAW 
 
REFTEL:  CONAKRY 827 
 
¶1.  (SBU) SUMMARY.  The Director General at the Central Bank 
revealed that currency reserves are down to about 12 days of 
imports.  However, he expressed optimism that return to a funded IMF 
program would improve the exchange rate, which subsequently hit a 
new low since the January/February strike.  He also reported that 
money laundering legislation was recently introduced in the National 
Assembly.  END SUMMARY. 
 
¶2.  (SBU) On November 7, Econoff met with the Director General of 
Credit and Exchange for the Central Bank, Mr. Cheick Sylla.  Mr. 
Sylla characterized the overall reform activities of the Central 
Bank of Guinea to be in a "wait and see" mode. He called it a "bit 
by bit" process.  He defended the pace by stating that since the 
arrival of the new consensus government of Prime Minister Kouyate 
and the appointment of a new governor of the bank, the bank has put 
in place a reform working group committee.  The committee submitted 
its recommendations to the Prime Minister for necessary reforms, but 
so far are still waiting to see if they will be implemented. 
 
¶3.  (SBU) The Director General revealed that the Central Bank 
recently submitted a bill to the National Assembly to formally 
criminalize money laundering.  Mr. Sylla claims that Guinean rules 
and regulations have always condemned money laundering, but no one 
has been officially arrested for being involved in it. The Central 
Bank is concerned about possible money laundering through the 
construction of buildings in Conakry.  Mr. Sylla said that people 
are constructing buildings and making large investments here without 
passing through any of the local financial institutions. 
Nevertheless, the Guinean authorities lack evidence, and legal 
basis, to charge them. 
 
¶4.  (SBU) Concerning the exchange rate policy, Mr. Sylla said the 
Central Bank was still working to strengthen the Guinea Franc. 
(NOTE: On November 13, the Guinea Franc/U.S. Dollar exchange rate 
hit a new post strike low, 4179 Gnf/dollar.  END NOTE.)  The 
Director General claimed that the Central Bank is no longer 
financing off-budget expenses and the budget deficit. He also 
claimed that a tax exemption abusively used by some businessmen is 
no longer valid, which provides the GOG with a new revenue stream. 
Mr. Sylla stated that if Guinea is able to get on a funded program 
with the IMF, the exchange rate would stabilize at around 4000 
GNF/Dollar. 
 
¶5.  (SBU) Mr. Sylla confided that the Central Bank currently has 
reserves of approximately USD 59 million. That is about 12 days of 
imports, according to his figures.  This is down from the 27 days of 
imports he claimed in a July meeting with Econoff(see reftel). 
 
CARTER