2012 ANNUAL REPORT SUMMARISED VERSION Original

Transcription

IMPRIMERIE BCEAO
2012 ANNUAL REPORT
SUMMARISED VERSION
Avenue Abdoulaye Fadiga
BP 3108 - Dakar - Sénégal
www.bceao.int
Original : French
2012 ANNUAL REPORT
SUMMARISED VERSION
© Central Bank of West African States
Avenue Abdoulaye FADIGA – BP 3108 – Dakar – Senegal
ISSN 08508674
CONTENTS
BCEAO HIGHLIGHTS IN 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
MEMBERSHIP OF THE STATUTORY ORGANS AND ORGANISATION CHART OF THE BCEAO. . 15
GOVERNOR’S MESSAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .30
OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .32
I - ECONOMIC AND FINANCIAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
1.1 - INTERNATIONAL ECONOMIC AND FINANCIAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . .34
1.2 - WAMU ECONOMIC AND FINANCIAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
1.2.1 - Gross domestic product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
1.2.2 - Agricultural production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
1.2.3 - Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .39
1.2.4 - Industrial production and retail trade turn-over . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . 39
1.2.5 - Price developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
1.2.6 - Public finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
1.2.7 - Balance of payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
1.2.8 - Resource mobilisation and external debt position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
II - MONETARY POLICY IMPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.1 - MONETARY POLICY OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
2.2 - MONETARY ACTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .44
2.2.1 - Interest rate policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
2.2.2 - Open market operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2.2.3 - Actions through permanent refinancing windows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2.2.4 - Reserve requirements system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
2.3 - TRENDS IN MONETARY AGGREGATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
2.3.1 - Net foreign assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
2.3.2 - Domestic credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
2.3.2.1 - Net position of Governments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
2.3.2.2 - Credit to the economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
2.3.2.3 - Trends in credit registered with the central credit register. . . . . . . . . . . . . . . . . . . . . . . . . . 52
2.3.3 - Money supply and monetary base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
2.3.4 - Private savings collected by banks and savings banks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
2.3.5 - Central Bank financial assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
2.3.6 - Trends in cumulative reserve requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
2.3.7 - Interbank market transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
2.3.8 - Public and private security market transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
III - CURRENCY ISSUE AND PAYMENT SYSTEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
3.1 - MANAGEMENT OF CURRENCY OUTSIDE BANKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
3.1.1 - Currency outflows and inflows through BCEAO windows . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
3.1.1.1 - Outflows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
BCEAO Annual Report – 2012
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3.1.1.2 - Inflows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
3.1.2 - Structure of currency outside banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
3.2 - PROCESSING OF PAYMENTS WITHIN WAMU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
3.2.1 - Cross-border flows of banknotes through BCEAO branch windows . . . . . . . . . . . . . . . . . . .68
3.2.2 - Flows among WAMU member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
3.3 - PROCESSING OF EXTERNAL PAYMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
3.3.1 - Foreign banknote transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
3.3.2 - Non-cash money transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
3.4 - OPERATION OF PAYMENT SYSTEMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
3.4.1 - WAEMU Automated Transfer and Settlement System (STAR-UEMOA). . . . . . . . . . . . . . . . .71
3.4.2 - WAEMU Automated Interbank Clearing System (SICA-UEMOA). . . . . . . . . . . . . . . . . . . . . .72
3.4.3 - Regional interbank electronic banking system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
3.4.4 - Payment Incident Centre. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
3.4.5 - Supervision of payment systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
3.4.6 - Legal and regulatory framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
IV - BANKING AND FINANCIAL SYSTEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
4.1 - REVIEW OF DEVELOPMENTS IN THE BANKING SYSTEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
4.1.1 - Trends in the banking network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
4.1.2 - Activities of banks and financial institutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
4.1.3 - Status in relation to prudential rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
4.1.4 - Rating agreements mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
4.2 - REVIEW OF DEVELOPMENTS IN THE REGIONAL FINANCIAL MARKET. . . . . . . . . . . . . . . . . 79
4.3 - REVIEW OF DEVELOPMENTS IN DECENTRALISED FINANCIAL SYSTEMS . . . . . . . . . . . . . .80
4.3.1 – Activity indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
4.3.2 - Implementation of the regional support programme for decentralised finance (PRAFIDE) . .80
4.3.2.1 - Legal framework and prudential rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
4.3.2.2 - Supervision of the microfinance sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
4.3.2.3 - Improving financial information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
4.3.2.4 - Capacity building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
4.3.3. - Sector review and outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
4.4 - ENHANCEMENT OF FINANCIAL STABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
4.4.1 - Meetings of the WAMU Financial Stability Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.4.2 - Monitoring of risks within the banking system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.4.3 - Setting up of a Deposit Guarantee Fund for financial institutions within WAMU . . . . . . . . . . . . . 84
4.4.4 - Reworking of the prudential mechanism applicable to credit institutions in WAMU . . . . . . . . . . .84
4.4.5 - Authorisation of bank-like financial institutions to receive deposits of funds from the public. . . . . 84
4.4.6 - Updating of the law on disputes involving violations of the regulation on external
financial relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
4.4.7 - Establishment of a specific legal framework for the treatment of dormant accounts in WAEMU. .85
4.4.8 - Improvement of the payment systems regulatory framework and management mechanism . . . .85
4.4.9 - Review of the laws on the fight against money laundering and financing of terrorism . . . . . . 86
4.4.10 - Updating of the regulatory framework pertaining to repo transactions. . . . . . . . . . . . . . . . . . 86
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4.4.11 - Establishment of Primary Dealers (PDs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86
4.4.12 - Finalisation of instruments pertaining to monetary policy . . . . . . . . . . . . . . . . . . . . . . . . . . .86
V - OTHER ACTIVITIES OF THE BCEAO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
5.1 - MANAGEMENT OF FOREIGN EXCHANGE RESERVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
5.2 - ECONOMIC INTEGRATION OF WAEMU MEMBER STATES. . . . . . . . . . . . . . . . . . . . . . . . . . . .88
5.3 - MONETARY AND FINANCIAL COOPERATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
5.3.1 - Relations with the Bretton Woods institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
5.3.2 - Relations with other institutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
5.4 - OTHER ACTIVITIES AND PROJECTS OF THE BCEAO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
5.4.1 - Collection, management and dissemination of statistical information. . . . . . . . . . . . . . . . . . .91
5.4.2 - Balance sheet centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
VI - BCEAO'S INSTITUTIONAL AND ADMINISTRATIVE FRAMEWORK . . . . . . . . . . . . . . . . . . . . . .93
6.1 - ACTIVITIES AND OPERATION OF STATUTORY BODIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
6.1.1 - Conference of the Union Heads of State and Government . . . . . . . . . . . . . . . . . . . . . . . . . . 93
6.1.2 - WAMU Council of Ministers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
6.1.3 - BCEAO Monetary Policy Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
6.1.4 - Board of Directors of the BCEAO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
6.1.5 - BCEAO Audit Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
6.2 - ADMINISTRATION OF THE BCEAO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
6.2.1 - Human resources management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
6.2.1.1 - Organisation chart and individual measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
6.2.1.2 - Staffing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
6.2.1.3 - Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
6.2.2 - Changes in the BCEAO's network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
6.2.3 - Information and communication system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
6.2.4 - Modernisation of documentation and archives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
6.2.5 - Risk management and control activity mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
6.2.6 - Management control mechanism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109
ANNEXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
- Timeline of the principal monetary policy measures adopted by the BCEAO . . . . . . . . . . . . . . . . . .110
- Principal documents published by the BCEAO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
LIST OF GRAPHS
Graph 1: WAEMU's real GDP growth rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Graph 2: Production of food crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Graph 3: Agricultural export productions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Graph 4: Domestic credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Graph 5: Money supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Graph 6: Monetary base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Graph 7: WAMU – Integrated monetary position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Graph 8: Domestic savings of individuals and enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
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Graph 9: Banknote inflows and outflows through BCEAO windows . . . . . . . . . . . . . . . . . . . . . . . . . . . .66
Graph 10: Coin inflows and outflows through BCEAO windows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Graph 11: Trends in BCEAO staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
LIST OF TABLES
Table 1: Changes in annual average exchange rates (CFA francs per currency unit) . . . . . . . . . . . . . . 35
Table 2: Changes in quarterly average exchange rates (CFA francs per currency unit) . . . . . . . . . . . . 36
Table 3: Changes in consumer prices in 2011 and 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Table 4: Reserve requirement ratios applicable to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
Table 5: Integrated monetary situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
Table 6: Review of changes in net foreign assets, by country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Table 7: Review of changes in the net position of Governments, by country . . . . . . . . . . . . . . . . . . . . .50
Table 8: Country trends in credit to the economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Table 9: Country trends in money supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Table 10: Trends in country private savings collected by banks and savings banks . . . . . . . . . . . . . . . 57
Table 11: Central bank financial assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Table 12: BCEAO interventions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Table 13: Central Bank financial assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Table 14: Credit to the economy and refinancing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
Table 15: Breakdown of refinancing of credit to the economy per window . . . . . . . . . . . . . . . . . . . . . . 61
Table 16: Trends in reserves constituted by banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Table 17: Trends in reserves accumulated by financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Table 18: Changes in interbank rates in 2012 (weighted average) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Table 19: Trends in interbank lending within WAMU in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
Table 20: Breakdown of outflows through BCEAO windows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Table 21: Breakdown of inflows through BCEAO windows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Table 22: Breakdown of banknotes and coins in circulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
Table 23: Cross-border flows of banknotes through BCEAO Branch windows. . . . . . . . . . . . . . . . . . . .68
Table 24: Flows among WAMU member countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Table 25: Transfer flows via the BCEAO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Table 26: Trends in selected STAR-UEMOA indicators in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Table 27: Characteristic data on SICA-UEMOA exchanges as at 31 December 2012 . . . . . . . . . . . . . .73
Table 28: CIP / PIC application data as at 31 December 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
Table 29: Country distribution of credit institutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Table 30: Trends in uses and resources of WAMU-based banks and financial institutions . . . . . . . . . . 78
Table 31: Rating agreements processed in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
6
WEST AFRICAN MONETARY UNION (WAMU)
The West African Monetary Union (WAMU), established by the Treaty of 12 May 1962, which was
subsequently replaced by the treaties of 20 14 November 1973 and January 2007, comprises the
following eight member countries located in West Africa:
BENIN
MALI
BURKINA
NIGER
COTE D’IVOIRE
SENEGAL
GUINEA-BISSAU
TOGO
The Central Bank of West African States (BCEAO), whose fiftieth year of activity is described herein, is
the common central bank of the WAMU member States; it is in charge notably of managing the common
currency of its member countries, the African Financial Community franc (CFA franc), and their foreign
exchange reserves, as well as defining and implementing their common monetary policy.
N.B. - Unless otherwise specified, all values indicated hereinafter are expressed in CFA francs.
7
BCEAO HIGHLIGHTS IN 2012
The following highlights marked the past financial year for the BCEAO.
AT MONETARY AND FINANCIAL LEVELS
Fiftieth anniversary of the BCEAO
2012 marked the fiftieth anniversary of the Central Bank of West African States. On the occasion of the
launching of the commemorative events marking this milestone, the current Chairman of the
Conference of the Union Heads of State and Government, His Excellency Faure Essozimna
Gnassingbé, President of the Togolese Republic, addressed a message to the people of the Union. His
message was broadcast on the national television stations of the member States of the Union on 31
October 2012, the day before the anniversary of the entry into force of the Treaty of 12 May 1962,
establishing WAMU.
In the framework of that celebration, the BCEAO organised a symposium in Dakar on 5 and 6
November 2012, on the subject of monetary integration and changes in the international financial
system. The aim of the symposium was to review the performance of the BCEAO’s fifty years in
operation, as well as to analyse trends in economic and financial thought and practices in central
banks, and to examine the new stakes and challenges linked to the building and consolidation of
monetary zones. The symposium was attended by some two hundred participants from five continents.
The opening ceremony of the event was chaired by the Senegalese Head of State, His Excellency
Macky Sall. The closing ceremony was chaired by His Excellency Alassane Ouattara, President of the
Republic of Côte d’Ivoire, in the presence of his Senegalese counterpart, accompanied by their
respective spouses. At the closing ceremony of the symposium, the 2012 “Special BCEAO fiftieth
anniversary” edition of the Abdoulaye Fadiga Prize for the promotion of economic research was
awarded.
Seminar on the overhauling of the compilation system for balance of payments
statistics in WAEMU
From 23 to 27 April 2012, the BCEAO organised a seminar at its Headquarters on the overhauling of
the compilation system for balance of payments statistics in WAEMU. This event, which marked the
launching of the Union’s production of balance of payments statistics using the methodology of the sixth
edition of the IMF Manual, was attended by the members of the Working Group, comprising the
National Directorates, the Central Services Directorates contributing to the compilation of balance of
payments statistics and the Research and Statistics Directorate, which is responsible for providing
Technical Secretariat services.
The goals of the seminar notably included providing training for all actors involved in the production of
foreign accounts statistics on the principles and concepts of the sixth edition of the Balance of
Payments and International Investment Position Manual, with support from an IMF technical mission, as
well as reviewing and validating the documents prepared by the Working Group’s Technical Secretariat.
8
Regional concertation on the development of mobile banking1
The development of mobile banking is a strategic priority identified by the BCEAO with a view to
promoting the use of electronic payment methods and the financial inclusion of underprivileged
populations in WAEMU. With this in mind, several actions aimed at promoting mobile banking in
WAEMU were carried out in 2012. These include the signing of a memorandum of understanding with
the Consultative Group to Assist the Poor (CGAP) 2 with a view to conducting studies on the supply and
demand of financial services with respect to the people of the Union, the drawing up of a plan of action
for the development of mobile banking in WAEMU as well as the setting up of an Experts’ Committee in
charge of defining the development strategy.
In this framework, a regional concertation meeting took place at BCEAO Headquarters in Dakar, from
27 to 29 June 2012, in order to share the experiences of pioneering countries in the area of mobile
banking, spark dialogue between the principal stakeholders and suggest strategic directions for
promoting the payment method in WAEMU.
The concertation event was attended by sixty-eight (68) participants from the Central Banks of Kenya,
Tanzania and the Philippines, international partners in development such as the African Development
Bank (ADB), the Consultative Group to Assist the Poor (CGAP) and the GSM Association (GSMA). It
was also attended by representatives of the banking and microfinance sectors and of issuers of
electronic money, mobile telephone companies, the agency regulating telecommunications and postal
services in Senegal, as well as officials from the Office of the General Secretary of the WAMU Banking
Commission and the BCEAO.
Regional seminar on improving the microfinance sector
A BCEAO/member State working group in charge of proposing measures for the preservation and
consolidation of microfinance sector viability in WAMU was set up by the Council of Ministers of the
Union in October 2010. In 2012, the working group organised national concertation meetings in each
member State of the Union, in April and May, for the purpose of inventorying the concerns of the
different actors in the sector and identifying potential solutions. It also organised three (3) themed
meetings in July and August 2012 on: governance and information systems of Decentralised Financial
Systems (DFS/SFD); monitoring and financial viability of DFS/SFD and recovery for DFS/SFD in
difficulty.
A regional seminar for the validation of the conclusions of those meetings was organised by the working
group on 6-7 September 2012, at BCEAO Headquarters in Dakar. This meeting was attended by
representatives of the WAMU member States, the BCEAO, professional associations of decentralised
financial systems (PADFS / APSFD), resource persons, and technical and financial partners, namely
Agence Française de Développement (AFD – French cooperation), Luxembourg cooperation, the
Consultative Group to Assist the Poor (CGAP), Développement International Desjardins (DID), the
United Nations Capital Development Fund (UNCDF) and the United Nations Development Programme
(UNDP).
The meeting notably afforded the participants with an opportunity to adopt the recommendations issued
by the working group during their themed working sessions and identify complementary measures to
improve governance, information systems and supervision for decentralised financial systems in
1 Mobile banking, in the strict sense of the term, refers to banking services offered by banks through mobile telephones or tablets.
These services mainly include consultation, bill payment, money transfers, etc. In the broad sense, the concept can be extended to all
financial services that can be offered with or without bank accounts by any institution that has been authorised for that purpose.
2 CGAP – Consultative Group to Assist the Poor – Non-Governmental Organisation belonging to the World Bank Group which is active
in the field of microfinance and inclusive financial services.
9
WAMU, as well as solutions to promote the recovery of decentralised financial systems in difficulty. The
plan of action for the preservation and consolidation of microfinance sector viability in the Union,
produced by this seminar, was adopted by the WAMU Council of Ministers, through Decision No.
CM/UMOA/024/12/2012, during its ordinary session of 14 December 2012.
Launching ceremony for the new 500 CFA Franc banknote
On 3 November 2012, His Excellency Macky Sall, President of the Republic of Senegal, visited BCEAO
Headquarters.
After the welcoming remarks by Governor Tiémoko Meyliet Koné, the visit was marked by an address
on the launching of the new 500 CFA Franc banknote, during which His Excellency Macky Sall saluted
the performance of the BCEAO and congratulated its staff.
The President of the Republic of Senegal and the Governor of the BCEAO then introduced the new
banknote. His Excellency Macky Sall also honoured the Musée de la Monnaie, the boardroom and the
panoramic banquet hall with his presence.
Regional concertation on the promotion of access to the banking system and use
of non-cash payment methods in WAEMU
The BCEAO organised a regional concertation event on the promotion of access to the banking system
and use of non-cash payment methods in WAEMU at BCEAO Headquarters from 21 to 23 November
2012. The meeting, which entered into the framework of the evaluation of the strategies deployed since
2007 to facilitate popular access to financial services and promote the use of new payment methods,
had two main aims: evaluating the implementation of the 2007-2012 plan of action for the promotion of
access to the banking system and use of non-cash payment methods and the definition of a new
strategic plan for the promotion of financial inclusion in WAEMU.
In addition to the BCEAO, the concertation meeting was attended by delegations representing public
financial administrations, banks and professional associations of banks and financial institutions,
Decentralised Financial Systems, foreign partners such as Bank Al-Maghrib, the French advisory
committee on the financial sector (Comité Consultatif du Secteur Financier), the Consultative Group to
Assist the Poor (CGAP), the Alliance for Financial Inclusion (AFI) and consumers’ associations.
It should be noted that, in preparation for the concertation event, meetings were held in 2012 in every
country in the Union and with all concerned stakeholders, to conduct local reviews of the
implementation of the plan for 2007-2012.
Meetings are planned in every country in the Union to report the conclusions of the regional
concertation meeting with a view to involving all stakeholders in implementing its recommendations.
Training seminar on central bank activities and combating money laundering
and financing of terrorism
From 10 to 12 December 2012, a training seminar on “Central bank activities and combating money
laundering and financing of terrorism” took place at BCEAO headquarters in Dakar. This seminar
formed part of a series of capacity-building activities for BCEAO staff in the area of the fight against
10
money laundering and financing of terrorism, aimed at improving the handling of this activity within the
Central Bank in keeping with the legal obligations incumbent on the institution. It was attended by
representatives of the BCEAO, the Inter-Governmental Action Group against Money Laundering in
West Africa (GIABA), Banque de France (the French central bank), SWIFT (Society for Worldwide
Interbank Financial Telecommunication), France’s prudential supervisory authority (ACP), and
Senegal’s national financial intelligence unit (CENTIF).
AT THE ECONOMIC INTEGRATION AND MONETARY COOPERATION LEVELS
BCEAO participation in a training seminar for the website administrators of the
Association of African Central Banks (AACB)
The Permanent Secretariat of the Association of African Central Banks (AACB), with support from the
Central Bank of West African States (BCEAO), organised a training seminar for AACB website
administrators in member Central Banks, at BCEAO Headquarters in Dakar, on 21-22 May 2012. The
aim of the seminar was to train participants on new administration procedures to promote member
central banks’ mastery of the content management system in use and regular updating of the website
using quality data. The seminar was attended by twenty-five (25) delegates from twenty (20) member
institutions.
Trainer training seminar on the legal framework applicable to Decentralised Financial
Systems in the Union
The BCEAO organised a trainer training seminar on the legal framework applicable to Decentralised
Financial Systems (DFS / SFD) in WAMU, at its Headquarters in Dakar, from 21 to 25 May 2012. In
addition to staff from the BCEAO and the Office of the Secretary General of the WAMU Banking
Commission, the seminar was attended by some twenty participants representing decentralised
financial systems’ ministerial monitoring structures (SMS) and the partners in development involved in
the implementation of the regional support programme for decentralised finance (PRAFIDE), i.e. LuxDevelopment. The aim of the meeting was to promote ownership of the new legal framework applicable
to DFS / SFD by monitoring agency staff.
Seminar on “Public policy evaluation”
In the framework of the implementation of its capacity-building programme for WAEMU member States’
economic and financial administrations, the BCEAO organised a regional training seminar on the
subject of “Public policy evaluation” in Lomé, Togo, from 4 to 8 June 2012. The overall aim of the
session was to reveal the potential of public policy evaluation as a decision-making tool and as a tool
for improving government performance as well as to familiarise participants with the main techniques
used in public policy evaluation. The session was attended by some fifteen participants from the
economic and financial administrations of the member States of the Union.
Joint regional seminar by the IMF Institute for Capacity Development (ICD) and COFEB on the
topic of “Macroeconomic management and debt issues”
In the framework of the implementation of the Central Bank’s external training activities for FY 2012,
COFEB, in partnership with the IMF Institute for Capacity Development (ICD), organised a regional
seminar on the topic of “Macroeconomic management and debt issues” at BCEAO Headquarters from
25 June to 6 July 2012. The session brought together twenty-eight (28) participants from the structures
in charge of debt management in the economic and financial administrations of all eight (8) WAMU
member States as well as Guinea, Mauritania, Burundi and the Democratic Republic of Congo. BCEAO
staff also took part in the seminar. The opening ceremony was attended by the Ambassador of the
Kingdom of Belgium to Senegal, as the Belgian Government provided financial support for the
organisation of the session.
11
The purpose of the seminar was to enable the participants to familiarise themselves with the principal
concepts and frameworks used in developing domestic and foreign public debt management strategy.
The seminar should also enable its participants to better grasp the role of debt strategy in
macroeconomic management and to become acquainted with the new public debt management
strategy development model developed by the Bretton Woods Institutions.
Annual Concertation Meeting between OHADA and the Regulatory Organs and Institutions
of WAEMU and CEMAC
The BCEAO took part in a meeting held on 30 August 2012 at its Headquarters in Dakar in the
framework of annual concertation between the Permanent Secretariat of the Organisation for the
Harmonization of Business Law in Africa (OHADA), the Organs and Institutions of the West African
Economic and Monetary Union (WAEMU) and the Central African Economic and Monetary Community
(CEMAC). The meeting brought together twenty-three (23) participants from the Permanent Secretariat
of the Organisation for the Harmonization of Business Law in Africa (OHADA), the Bank of Central
African States (BEAC), the Commission of the West African Economic and Monetary Union (WAEMU),
the West African Monetary Union Banking Commission (WAMU BC), the Central African Banking
Commission (COBAC), the Inter-African Conference on Insurance Markets (CIMA), the Inter-African
Conference of Social Security Institutions (CIPRES) and the Regional Council for Public Savings and
Financial Markets (CREPMF).
At the outcome of their exchanges, the participants highlighted the specificities of banking, monetary,
financial and social security law, as well as the accounting law pertaining to businesses that are subject
to special rules and are exempted from the common law of OHADA. They stressed the need to
reinforce this concertation in order to define appropriate common solutions taking account of the
independence and the particularities of the law applying to areas governed by specific standards, in
relation to OHADA law.
The participants also discussed a permanent framework for concertation (CPC) and specified its
makeup and the modalities for its implementation. The setting up of this framework was recommended
by the OHADA Council of Ministers during its session held in Lomé from 13 to 15 December 2010. The
BCEAO was asked to kindly act as the first secretary of the CPC, once it was put in place.
Sixth meeting of the sub-regional unit in charge of reconciling data on intra-WAEMU exchanges
The sixth meeting of the sub-regional unit in charge of reconciling data on intra-WAEMU exchanges
was held at BCEAO Headquarters on 24 and 25 September 2012. The meeting brought together
participants from the statistical and customs administrations of the member States of the Union, the
WAEMU Commission and the BCEAO National Directorates.
The purpose of the meeting was to conduct a detailed analysis of the asymmetries noted in the bilateral
statistics reports of the States, with a view to reconciling data on intra-WAEMU trade for FY 2011 and
evaluating intra-WAEMU transactions pertaining to tourism, remittances and direct foreign investments.
The meeting also provided an opportunity to review and adopt a common methodology for estimating
freight rates in the countries of the Union, as well as to review the implementation of the
recommendations issued by the previous meetings of the unit and to formulate new recommendations
with a view to consolidating the WAEMU foreign exchange monitoring mechanism.
12
Joint regional seminar organised by AFRITAC West and the BCEAO on the topic of
“Managing banks in difficulty and resolving bank crises”
The BCEAO, in partnership with the International Monetary Fund (IMF) African Regional Technical
Assistance Center (AFRITAC West), organised a regional training seminar on the topic of “Managing
banks in difficulty and resolving bank crises” from 1 to 5 October 2012, at its Headquarters in Dakar.
The main objective of the seminar was to acquaint participants with the key elements of the analysis of
the difficulties faced by banks and to review the techniques used in bank crisis resolution. It was
specifically aimed at improving their knowledge about preventive means of detecting bank failures,
alternative measures for crisis resolution and preserving financial stability, conditions for implementing
interim administration, bail-out plans or liquidations as well as ways of preventing and solving crises in
the WAEMU Zone.
The session brought together thirty-six (36) participants, mainly senior staff from the Ministries of the
Economy and Finances of all eight (8) WAEMU member States, BCEAO National Directorates and
Headquarters, the Office of the Secretary General of the WAMU Banking Commission, the WAEMU
Commission, the Central Bank of Mauritania and the Central Bank of the Republic of Guinea.
IN TERMS OF THE MANAGEMENT OF THE BCEAO
Meeting of the Governor with the Directors-General
On 9 January 2012, at BCEAO Headquarters, Governor Tiémoko Meyliet Koné officially presented the
Directors-General with their mission statements. The meeting, which was also attended by the ViceGovernors and the Secretary General, focused on congratulating the Directors-General and
emphasising that their appointment was a response to the Central Bank’s need to adapt its organisation
to the broadening of its traditional fields of activity and the evolution of the international economic
environment. This official ceremony marking the presentation of the mission statements was symbolic
of the new human resource management method in the Bank. In that regard, the Governor stressed the
importance of the Directors-General in the decision-making chain within the Institution and called on
their solidarity to better share best practices.
The Director General of Administration and Assets, Mr Siriki Koné, thanked the Bank Authorities on
behalf of the Directors-General, for the trust and the wise counsel bestowed on them. Above all, he
undertook to work tirelessly to achieve the assigned objectives.
High-level seminar on the subject of “Strategic planning and results-based management”
From 7 to 12 May 2012, the BCEAO held a high-level seminar for its management on the subject of
“Strategic planning and results-based management”. The seminar, which took place in BCEAO
Headquarters, came four months after the reorganisation of the Central Bank Departments, at the
outcome of which the Governor assigned objectives to the Directors-General, through their mission
statements, which they are expected to break down into plans of action. The effective implementation of
such plans requires strong mastery of strategic planning tools and results-based management. The
tools can be used to alert managers to potential problems, through a management information system
and management dashboards, so that they can take corrective measures during implementation, before
it is too late. Results-based management is intended to improve decision-making and raise managers’
awareness of the importance of accountability and transparency in management.
13
Seminar on the topic of “Internal audit methodology and practices”
In the framework of capacity building for its internal auditors, the BCEAO organised a seminar from 17
to 21 December 2012, in Dakar, on the topic of “Internal audit methodology and practices”. The
organisation of this seminar reflects the Bank Authorities’ emphasis on capacity building for internal
auditors, particularly in the light of the implementation of a professional certification programme planned
for 2013-2014. Its purpose is to promote the harmonious integration of beginning auditors into the staff
and to provide more experienced auditors with an opportunity to compare their experiences with
international standards and best practices.
14
MEMBERSHIP OF THE STATUTORY BODIES
AND ORGANISATION CHART OF THE BCEAO
15
MEMBERSHIP OF THE WAMU CONFERENCE OF HEADS OF
STATE AND GOVERNMENT
as at 31 December 2012
CHAIRMAN: His Excellency Faure Essozimna GNASSINGBE,
President of the Togolese Republic.
His Excellency Boni YAYI,
President of the Republic of Benin.
His Excellency Blaise COMPAORE,
President of Burkina Faso.
His Excellency Alassane OUATTARA,
President of the Republic of Côte d’Ivoire.
Son Excellence Manuel Serifo NHAMADJO,
Acting President of the Republic of Guinea-Bissau.
His Excellency Dioncounda TRAORE,
Acting President of the Republic of Mali.
His Excellency Issoufou MAHAMADOU,
President of the Republic of Niger.
His Excellency Macky SALL,
President of the Republic of Senegal.
His Excellency Faure Essozimna GNASSINGBE,
President of the Togolese Republic.
16
MEMBERSHIP OF THE WAMU COUNCIL OF MINISTERS
Chairman: Mr Tièna COULIBALY,
Minister of the Economy, Finance and the Budget of the Republic of Mali.
Republic of Benin
Mr Jonas GBIAN, Minister of the Economy and Finance;
Mr Marcel de SOUZA, Minister of Economic Analysis, Development, and Planning.
Burkina Faso
Mr Lucien Marie Noël BEMBAMBA, Minister of the Economy and Finance;
Mr Vincent ZAKANE, Deputy Minister in charge of Regional Cooperation.
Republic of Côte d'Ivoire
Mme Nialé KABA, Minister in charge of the Economy and Finance;
Mr Ali COULIBALY, Minister of African Integration.
Republic of Guinea-Bissau
Mr Abubacar Demba DAHABA, Minister of Finance;
Mr Abubacar BALDE, Minister of Commerce, Industry and Promotion of Local Products.
Republic of Mali
Mr Tièna COULIBALY, Minister of the Economy, Finance and the Budget;
Mr Marimpa SAMOURA, Deputy Minister in charge of the Budget, Ministry of the Economy, Finance
and the Budget.
Republic of Niger
Mr Gilles BAILLET, Minister of Finance;
Mr Amadou Boubacar CISSE, Senior Minister in Charge of Planning, Land Development and
Community Development.
Republic of Senegal
Mr Amadou KANE, Senior Minister of the Economy and Finance;
Mr Abdoulaye Daouda DIALLO, Deputy Minister in charge of the Budget, Ministry of the
Economy and Finance.
Togolese Republic
Mr Adji Othèth AYASSOR, Minister of the Economy and Finance;
Mr Mawussi Djossou SEMODJI, Minister in the Service of the President of the Republic in charge of
Planning, Development and Management of the Territory.
17
MEMBERSHIP OF THE BCEAO MONETARY POLICY COMMITTEE
CHAIRMAN: Mr Tiémoko Meyliet KONE
Governor of the BCEAO.
Mr Jean-Baptiste M. P. COMPAORE, Vice Governor of the BCEAO.
Mr Mamadou DIOP, Vice Governor of the BCEAO.
MEMBERS REPRESENTING THE STATES
Republic of Benin
Mr Houéssou Yaovi HADONOU, Director of Monetary and Financial Affairs.
Burkina Faso
Mr Ousmane OUEDRAOGO, Former Vice Governor of the BCEAO,
Former Senior Minister of Finance and Planning.
Mr Kanvaly DIOMANDE, Special Advisor to the Prime Minister.
Mr Rui Duarte FERREIRA, Director of the Cabinet of the Minister of Finance.
Republic of Mali
Mr Bangaly N'ko TRAORE, Director General of the Public Debt Management Office.
Republic of Niger
Mr Mahamane Annou MALLAM, Former Chairman of the Research Group on the Democratic,
Economic and Social Development of Africa (GERDES).
Republic of Senegal
Mme Gnounka DIOUF, Minister-Advisor to the President of the Republic.
Togolese Republic
Mr Mongo AHARH-KPESSOU, Permanent Secretary for the Monitoring of
Reform Policies and Financial Programmes.
French Republic
Mme Françoise DRUMETZ, Director of External Cooperation, Banque de France.
MEMBERS APPOINTED INTUITU PERSONAE
Mme Karidia SANON, Teacher at the Training and Research Unit in
Economic Sciences and Management (UFR/SEG), University of Ouagadougou,
Ouagadougou, Burkina Faso.
Mme Aoua Sylla BARRY, Secretary General to the Ministry of Mines
Bamako, Republic of Mali.
Mme Aïchatou KANE, Governor of the Region of Niamey
Niamey, Republic of Niger.
18
MEMBERSHIP OF THE BCEAO BOARD OF DIRECTORS
CHAIRMAN: Mr Tiémoko Meyliet KONE
Governor of the BCEAO
Republic of Benin
Mme Fatima Sékou MADOUGOU, Director General of Treasury and Public Accounting.
Burkina Faso
Mr Moumounou GNANKAMBARY, Director General of Treasury and Public Accounting.
Mr Adama KONE, Director General of Treasury and Public Accounting.
Mr Jorge Anibal PEREIRA, Director General of Treasury.
Republic of Mali
Mr Abdoulaye TOURE, Secretary General of the Ministry of the Economy and Finance.
Republic of Niger
Mr Hanounou DJIBRIL, Secretary General of the Ministry of Finance.
Republic of Senegal
Mr Waly NDOUR, Treasurer General, Principal Accounting Officer of the Treasury.
Togolese Republic
Mr Kodjo Tépé-Sévon ADEDZE, Director General of Customs.
French Republic
Mr Arnaud BUISSE, Deputy Director in charge of Multilateral Financial Affairs and Development at the
General Directorate of the Treasury.
19
MEMBERSHIP OF THE BCEAO AUDIT COMMITTEE
CHAIRMAN: Mr Abdoulaye TOURE,
Secretary General to the Minister of the Economy, Finance and the Budget (Mali)
Mr Adama KONE, Director General of Treasury and Public Accounting
Mr Jorge Anibal PEREIRA, Director General of Treasury
Republic of Niger
Mr Hanounou DJIBRIL, Secretary General of the Ministry of Finance.
20
Main branches
Sub-branches
CENTRAL BANK OF WEST AFRICAN STATES
GOVERNOR:
Mr Tiémoko Meyliet KONE
VICE-GOVERNOR:
Mr Jean-Baptiste M. P. COMPAORE
VICE-GOVERNOR:
Mr Mamadou DIOP
SECRETARY GENERAL:
Mme Fatimatou Zahra DIOP
Under-Secretary-General:
Mme Séna Elda KPOTSRA
Special Advisor to the Governor:
Mr Oumar Tatam LY
Advisors to the Governor:
Mr Siriki KONE
Mr Abdoulaye SECK
Mr Alain Fagnon KOUTANGNI
Mr João Alage Mamadu FADIA
CABINET OF THE GOVERNOR
Cabinet Director of the Governor:
Mme Sylviane MENSAH
GENERAL CONTROL
Comptroller General:
Advisors to the Comptroller General:
Mr Alain Fagnon KOUTANGNI
Mme Marguerite Faye SOUMARE
Mr Mamadou SEREME
Mr Boubacar DIA
GENERAL DIRECTORATES
Director General of Administration and Assets:
Director General of Economic and Monetary
Studies:
Mr Siriki KONE
Director General of Operations:
Mr Oumar Tatam LY
Mr Ismaila DEM
Director General of Organisation and Information
Systems:
Mr Abdoulaye SECK
Director General of Human Resources and
Training:
Mme Joëlle Annie BOLHO
ADVISORS TO THE DIRECTORS GENERAL
Advisor to the Director General of Administration
and Assets:
Mr Sidiki TRAORE
Advisor to the Director General of Economic and
Monetary Studies:
Mr Sogué DIARISSO
Advisor to the Director General of Operations:
Mr Paul Kaba THIEBA
Advisor to the Director General of Human
Resources and Training:
Mr Moussa SIRFI
Advisor to the Director General of Organisation
and Information Systems:
Mr Gnoan Abraham GNAMITCHE
22
CENTRAL SERVICES DIRECTORATES
Director of Studies:
Mr Armand BADIEL
Director of Research and Statistics:
Mr Bassambié BATIONO
Director of International Relations:
Mr Emmanuel Junior ASSILAMEHOO
Director of Financial Stability:
Mr Homialo GBEASOR
Director of Banking Activities and
Financing of the Economies:
Mr Ahmadou Al Aminou LO
Director of Fiduciary Activities:
Mr Cheick Ahmed Tidiany DIAKITE
Director of Microfinance and Decentralised
Financial Systems:
Mr Chalouho COULIBALY
Director of Market Transactions:
Mr Habib THIAM
Director of Payment Systems and Methods:
Mr Bwaki KWASSI
Director of Human Resource Management:
Mr Abdoulaye TRAORE
Director of the West African Centre for Bank Training
and Studies:
Director of Personnel and Social Services:
Mr Ousmane SAMBA MAMADOU
Mr Ibrahima SYLLA
Director of Management Control:
Mr Sahaka MAHAMAN SALAH
Director of Organisation and Methods:
Mr Kadjemna Guy GO MARO
Director of Information Systems:
Mr Abdoulaye MBODJ
Director of Inspection and Audits:
Mr Boubacar DIA
Director of Risk Prevention:
Mr Adjoumani KOUAKOU
Director of Legal Affairs:
Mme Séna Elda KPOTSRA
Director of Accounting:
Mr Fama Adama KEÏTA
Director of Administrative Affairs:
Mr Roger AGBOZOGNIGBE
Director of Assets:
Mr Hadama YBIA
Director of Security:
Mme Aminata FALL NIANG
Director of General Services:
Mr Alioune Blondin BEYE
REPRESENTATIONS
Resident Representative of the Governor with
the West African Economic and Monetary Union
(WAEMU) Commission:
Mr Charles Luanga KI-ZERBO
Representative of BCEAO with
European Cooperation Institutions:
Vacant
NATIONAL DIRECTORATES
National Director for Benin:
Mr Evariste Sébastien BONOU
National Director for Burkina Faso:
Mr Charles Luanga KI-ZERBO
National Director for Côte d’Ivoire:
Mr Jean-Baptiste Ayayé AMAN
23
National Director for Guinea-Bissau:
Mr João Alage Mamadu FADIA
National Director for Mali:
Mr Konzo TRAORE
National Director for Niger:
Mr Mahamadou GADO
National Director for Senegal:
Mr Mamadou CAMARA
National Director for Togo:
Mr Kossi TENOU
24
ADDRESSES OF BCEAO SITES
HEADQUARTERS
Avenue Abdoulaye FADIGA - Boîte Postale: No. 3108 - Dakar
Telephone: (221) 33 839 05 00 - Fax: (221) 33 823 93 35 and 33 822 61 09
Website: http://www.bceao.int
BENIN
Cotonou
Avenue Jean-Paul II
01 Boîte Postale: No. 325
Telephone: (229) 21 36 46 00
Fax: (229) 21 31 24 65
Email: [email protected]
Director of the Main Branch: Mme Flora MADJA ZOHOUN
Parakou
Boîte Postale: No. 201
Telephone: (229) 23 61 03 25/29
Fax: (229) 23 61 10 91
Sub-Branch Manager: Mr Moussibaou SANNI
BURKINA
Ouagadougou
Avenue Gamal Abdel Nasser
Telephone: (226) 50 49 05 00/01 and 50 30 60 15
Fax: (226) 50 31 01 22
Director of the Main Branch: Mr Monlour DA
Bobo-Dioulasso
Telephone: (226) 20 97 04 44/45/46
Fax: (226) 20 97 04 58
Sub-Branch Manager: Mr Adama SANKARA
25
COTE D’IVOIRE
Abidjan
Avenue Abdoulaye Fadiga
Boîte Postale: 01 BP 1769 ABIDJAN 01
Telephone: (225) 20 20 84 00 and 20 20 85 00
Fax: (225) 20 22 00 40 and 20 22 28 52
Director of the Main Branch: Mr Yaya SISSOKO
Abengourou
Telephone: (225) 35 91 37 15 and 35 91 38 15
Fax: (225) 35 91 31 76
Sub-Branch Manager: Mr Yao Magloire KONAN
Bouaké
Boîte Postale: no. 773
Telephone: (225) 31 63 33 13 and 31 63 33 14
Fax: (225) 31 63 38 31
Sub-Branch Manager: Vacant
Daloa
Telephone: (225) 32 78 38 85
Fax: (225) 32 78 13 10
Sub-Branch Manager: Mr Ningou Jacques HLYH GNELBIN
Korhogo
Telephone: (225) 36 86 01 10 and 36 86 01 11
Fax: (225) 36 86 15 30
Man
Telephone: (225) 33 79 02 67
Fax: (225) 33 79 02 28
26
San Pedro
Telephone: (225) 34 71 21 74
Fax: (225) 34 71 24 48
Sub-Branch Manager: Mr Issouf OUATTARA
GUINEA-BISSAU
Bissau
Avenida Combatentes da Liberdade da Pátria
P.O. Box: No. 38
Telephone: (245) 325 63 25 - 321 55 48 and 321 41 73
Fax: (245) 325 63 00
Director of the Main Branch: Ms Felicidade Soares Correia de Brito ABELHA
MALI
Bamako
94 Avenue Moussa TRAVELE
Telephone: (223) 20 70 02 00 / 20 22 25 41 and 20 22 54 06
Fax: (223) 20 22 47 86
Director of the Main Branch: Mr Youssouf B. COULIBALY
Mopti
Telephone: (223) 21 43 01 02 and 21 43 05 65
Fax: (223) 21 43 05 07
Sub-Branch Manager: Mr Amadou Boucari CISSE
Sikasso
Telephone: (223) 21 62 00 77 and 21 62 06 57
Fax: (223) 21 62 08 79
Sub-Branch Manager: Mr Ibrahima TOURE
27
NIGER
Niamey
Rue de l'uranium
Telephone: (227) 20 72 33 30 and 20 72 33 40
Fax: (227) 20 73 47 43
Director of the Main Branch: Mr Amadou MOUSSA
Maradi
Telephone: (227) 20 41 00 96
Fax: (227) 20 41 00 45
Sub-Branch Manager: Mr Achirou DAN MAGARIA
Zinder
Telephone: (227) 20 51 00 94
Fax: (227) 20 51 07 24
Sub-Branch Manager: Mr Abdourahamane Aboubacar ABANI
SENEGAL
Dakar
Boulevard Général De Gaulle x Triangle sud
Telephone: (221) 33 889 45 45
Fax: (221) 33 823 57 57
Director of the Main Branch: Mr Djibril CAMARA
Kaolack
Telephone: (221) 33 938 40 00
Fax: (221) 33 941 33 23
Sub-Branch Manager: Mr Garantigui DOUMBOUYA
28
Ziguinchor
Telephone: (221) 33 991 10 39 and 33 938 80 35
Fax: (221) 33 991 16 59
Sub-Branch Manager: Mr Birama FALL
TOGO
Lomé
Rue Abdoulaye Fadiga
Telephone: (228) 221 53 84
Fax: (228) 221 76 02
Director of the Main Branch: Mr Kodjo SEDJRO
Kara
Telephone: (228) 660 60 79 and 660 61 37
Fax: (228) 660 62 69
Sub-Branch Manager: Mr Koamivi DIVO-AYAOVI
REPRESENTATION OF THE GOVERNOR WITH THE WAEMU COMMISSION
Avenue Gamal Abdel Nasser, Ouagadougou, Burkina
Boîte Postale: 64 OUAGADOUGOU 01
Telephone: (226) 50 31 61 01
Fax: (226) 50 30 63 76
REPRESENTATION OF THE BCEAO WITH EUROPEAN
COOPERATION INSTITUTIONS
29, rue du Colisée, 75008 Paris, France
Telephone: (33) 1 42 25 71 60
Fax: (33) 1 42 56 00 37
29
30
GOVERNOR’S MESSAGE
In 2012, the member States of the West African Economic and Monetary Union (WEAMU) marked a
return to strong economic growth after a particularly difficult year in 2011, marked by a post-electoral
crisis in Côte d’Ivoire and a drought in the Sahel.
Indeed, despite a slowdown in the global economy, the gross domestic product of the Union rose by
6.4% in 2012 compared to 0.7% the previous year. The rebound was driven by the economic recovery
in Côte d’Ivoire, strong growth in mining and industrial production, and a recovery in agricultural
production.
A slowdown in inflation was also recorded, as the rate of increase in the overall consumer price level fell
from an average of 3.9% in 2011 to an average of 2.4% in 2012.
Public finances in 2012 showed improvement over the previous year, with higher capital revenue and
expenditure and a lower budget deficit. On the other hand, the balance of trade was negative by 630.7
billion, owing to the increased oil bill and growing imports of capital equipment, in the framework of the
execution of economic infrastructure construction and rehabilitation projects. The overall balance of
payments for WAEMU member States was negative, at minus 261.1 billion, compared to a figure of
negative 10.4 billion in 2011.
Over FY 2012, the Central Bank of West African States (BCEAO) implemented various actions aimed at
bringing financial institutions closer to the people of WAEMU. In addition to initiatives for the
development of mobile banking services, it organised national concertation meetings in conjunction with
the member States, which culminated in the adoption of a plan of action to preserve and consolidate
the viability of the microfinance sector by the WAEMU Council of Ministers on 14 December 2012.
These measures were reinforced with the definition of a new strategic plan during the regional
concertation meeting held from 21 to 23 November 2012, at BCEAO Headquarters, to promote access
to the banking system and use of non-cash payment methods in WAEMU.
The focus of these efforts was to consolidate the strategies already implemented, particularly in terms
of facilitating public access to banking and financial services, to promote the use of modern payment
methods by the population, and to promote the mobilisation of savings through formal financial circuits.
The Central Bank of West African States (BCEAO) celebrated its fiftieth anniversary in 2012. The
event was focused on forward thinking, with the organisation of a high-level Symposium on 5-6
November 2012, in Dakar, on the central theme of monetary integration and changes in the
international financial system: review and outlook.
The debates highlighted the interrelationships between monetary integration, financial deepening and
economic growth. They also helped identify various risks, notably those linked to the fact that the
financial markets were still at the embryonic stage and especially the heterogeneity of the economic
situation in the member States, factors which entailed serious difficulties in terms of the steering
process within a monetary union.
31
Aware of the expectations of the people of the WAEMU member States, which have undertaken major
projects and structural reforms with a view to achieving stronger and more sustainable economic
growth, the Central Bank will pursue the implementation of its action programme. In so doing, it will
draw on the main conclusions of the Symposium to better organise and deepen the financial market.
The BCEAO will also determinedly pursue the setting up of tools for integration and sound and
innovative financing systems to enable the States and private economic actors to finance their activities
under optimum conditions.
The Governor of the Central Bank
of West African States,
Chairman of the Board of Directors
32
OVERVIEW
The international environment remained fragile in 2012, essentially due to uncertainties linked to the
persistence of the sovereign debt crisis in the Euro Zone, where the gross domestic product recorded a
0.6% drop, compared to an increase of 1.4% in 2011. The conjunction of the impact of the crisis with
other endogenous structural factors in various countries has led to a slowdown in the global economy.
According to International Monetary Fund (IMF) estimates carried out in July 2013, the global economic
growth rate was 3.1% compared to 3.9% in 2011.
A slowing of economic growth was also witnessed in developing and emerging countries. Available
estimates indicate an economic expansion of 4.9%, compared to 6.2% in 2011. The economy grew by
7.8% in China, compared to 9.3% in 2011. It experienced a gain of 4.0% in India, following 7.7% in
2011. In Brazil, the increase in the real GDP was 0.9% compared to 2.7% the year before. In subSaharan Africa, 4.9% growth was recorded in 2012 after 5.4% in 2011. Like the previous year, the
increase in economic activity was chiefly due to buoyancy in exports of raw materials, especially mining
products. It was also supported by a strong increase in spending on infrastructure, especially in the
Franc Zone countries.
In this context of economic slowdown and underuse of production capacity, inflation continued to slow
as well. In advanced countries, the inflation rate stood at 2.0% in 2012, after 2.7% in 2011. In emerging
and developing countries, it fell from 7.2% in 2011 to 5.9% in 2012. This situation prompted the principal
central banks to maintain the accommodating orientation of their monetary policies.
On the foreign exchange markets, the euro depreciated in average over FY 2012, down 7.7%
compared to the United States dollar and respectively 7.6% and 6.6% compared to the yen and the
pound sterling.
In the WAEMU member States, despite the impact of an unfavourable international environment and
internal shocks, the gross domestic product progressed by 6.4% in 2012 compared to 0.7% a year
earlier. The rebound in growth was linked to the economic recovery in Côte d’Ivoire, which was stronger
than expected, the growth in mining production due to the entry into production, in recent years, of
several gold and oil mining projects, as well as the recovery in agricultural production and the
strengthening of industrial production, in a context of increased availability of electrical power.
The inflation rate in WAEMU averaged 2.4% over FY 2012, compared to 3.9% in 2011. The slowing of
growth in inflation resulted from the dissipation of the impact of the post-electoral crisis in Côte d’Ivoire,
which had caused price hikes in the country in 2011. It was also linked to the drop in the price of
petroleum products in Niger due to the start-up of domestic production of oil and gas and the impact of
measures implemented by certain countries to increase off-season food production and cap increases
in cereal prices.
Financial transactions conducted by the countries of the Union resulted in an improvement in public
deficit levels in 2012. The overall deficit, based on commitments and excluding grants, shrunk to
2,189.9 billion, compared to 2,352.8 billion the previous year. In relation to the GDP, it stood at 5.4% in
2012, compared to 6.4% in 2011. The underlying budget balance showed a deficit of 906.8 billion, a
significant drop compared to its level the previous year. The positive change in public finance in 2012
was due to the efforts made by all of the States to increase budgetary revenue, estimated at 7,768.3
billion as at the end of December 2012, up 1,389.4 billion compared to the same period the previous
year.
The review of external accounts for FY 2012 was less favourable than in 2011. The overall balance of
payments of WAEMU member States showed a deficit of 261.1 billion in 2012, compared to a negative
balance of 10.4 billion in 2011.
33
This situation was due to the significant deterioration of the current and financial accounts, partially
offset by an improvement in capital account flows. The deficit in the current transactions account was
expected to grow by 113.6% in 2012, to reach 2,373.5 billion, due to the deterioration of the balance
of goods and services and primary income, whose impact was offset by an increase in secondary
income. The surplus in the capital account increased significantly, growing from 749.0 billion in 2011
to 3,625.0 billion in 2012, essentially due to debt cancellations for Côte d’Ivoire and project donations
received by the States.
The net external asset position of the monetary institutions stood at 5,578.3 billion at the end of
December 2012, down by 261.1 billion compared to the end of December 2011. The deterioration of the
net external position of the monetary institutions falls under the purview of the Central Bank, whose net
foreign assets stood at 5,527.6 billion, down 376.4 billion, somewhat offset by the 115.3 billion increase
in the net foreign assets of the banks. As a result, the Central Bank currency issue coverage ratio was
105.5% compared to 109.1% in 2011.
Reaching 11,690.2 billion at the end of December 2012, outstanding internal credits grew by an annual
rate of 15.2%. This increase was essentially due to the deterioration of the Governments’ net external
liability position, which stood at 2,866.3 billion at the end of December 2012, up 535.9 billion over the
previous year. It was also reinforced by the increase in credit to the economy, which grew by 12.9%
year over year, reaching 8,823.9 billion at the end of December 2012. Reflecting the trends in its
counterparts, the money supply grew by 9.8%.
Due to the moderate inflation levels and the risks hanging over the Union’s economy, the BCEAO decided
to drop its leading rates by 25 basis points, to contribute to the achievement of the economic growth
objectives set by the member States. Thus, the minimum bid rate for open market transactions and the
marginal lending rate (formerly known as the repo rate) respectively fell to 3.00% and 4.00% as of 16
June 2012.
The mandatory reserve mechanism of the BCEAO was adjusted on 16 March 2012. While it had
remained unchanged at 7% since 2010, the level of the required reserve coefficient was reduced to 5%
for all banks in WAEMU.
The Central Bank continued to carry out regular cash injection operations in 2012, through weekly
and monthly calls for tenders. In 2012, Central Bank interventions through weekly calls for tenders
culminated in average weekly injections of 440.3 billion CFA francs, against 242.0 billion CFA francs
in 2011. The marginal interest rate on weekly tenders fluctuated between 3.00% and 3.34%. It stood
at 3.00% on 31 December 2012. Through monthly calls for tenders, requests granted in 2012 rose to
414.8 billion CFA francs, against 176.8 billion CFA francs the previous year. The marginal rate on
these transactions rose gradually from 3.3101% in January 2012 to 3.3600% on 2 May 2012, before
following the downward trend of the Bank’s leading rates and bottoming out at 3.0000% on 31
December 2012.
At the institutional level, the 2012 financial year was chiefly marked by the celebration of the fiftieth
anniversary of the Central Bank. The event was commemorated at the institution’s Headquarters in Dakar
and in the National Branches, in a sober atmosphere marked by scientific thought, notably with the
organisation of a high-level symposium.
The meeting was held in Dakar on 5-6 November 2012, on the topic of monetary integration and
changes in the international financial system: review and outlook. It was attended by eminent
academics, distinguished figures from international and sub-regional central banks and financial
institutions, as well as bank and business leaders from the Union. During the Symposium, the
emblems of the special edition of the Abdoulaye Fadiga Prize for the promotion of economic research
were awarded to the winner.
34
In addition, the Departments of the Central Bank were reorganised on 4 January 2012. One of the principal
features of the reorganisation was the creation of Director General’s positions. Subsequently, Governor
Tiémoko Meyliet Koné officially presented the Directors-General with their mission statements during a
meeting organised at BCEAO Headquarters on 9 January 2012. This official notification was symbolic of the
new human resource management method in the Bank. The purpose of the meeting was to congratulate the
Directors-General, to point out their importance in the decision-making chain and to recall that their
appointment was a response to the Central Bank’s need to adapt its organisation to the broadening of its
traditional fields of activity and the evolution of the international economic environment.
At the end of the 2012, financial year, the accounts of the BCEAO were submitted for audit by the National
Auditors and the Statutory Auditor-Comptroller appointed by the Council of Ministers. The Statutory AuditorComptroller also conducted a review of compliance with the Operating Account Agreement in conjunction
with the Auditor appointed by France.
35
I - ECONOMIC AND FINANCIAL ENVIRONMENT
1.1 - INTERNATIONAL ECONOMIC AND FINANCIAL ENVIRONMENT
During the 2012 financial year, the economic and financial environment remained fragile on the global
scale, essentially due to the uncertainties raised by the persistent sovereign debt crisis in the Euro
Zone. The conjunction of this crisis with other endogenous structural factors was reflected in an
economic slowdown, both in advanced countries and in developing and emerging economies.
According to the latest estimates conducted by the International Monetary Fund (IMF) in July 2013, the
global economic growth rate stood at 3.1% compared to 3.9% in 2011.
In industrialised countries, economic activity was less intense overall, despite the revival recorded in
the United States and Japan. Recent estimates set the growth rate at 1.2%, after a performance of
1.7% in 2011. This situation was notably caused by the recession in the Euro Zone, where the gross
domestic product fell by 0.6% in 2012 compared to an increase of 1.5% in 2011.
In the United States, the economic growth rate was estimated at 2.2%, compared to 1.8% in 2011. The
Japanese economy continued its recovery with a rate of growth of 1.9%, compared to a deceleration of
0.6% in 2011.
In developing and emerging countries, a slowdown in economic growth was recorded in 2012. The IMF
set the economic growth rate at 4.9%, compared to 6.2% in 2011. In 2012, the Chinese economy
progressed by 7.8%, compared to 9.3% in 2011. There was a gain of 4.0% in India, following 7.7% in
2011. In Brazil, the increase in the real GDP was 0.9% compared to 2.7% the year before.
In sub-Saharan Africa, 4.9% growth was recorded in 2012 after 5.4% in 2011. Like the previous year,
the increase in economic activity was chiefly due to buoyancy in exports of raw materials, especially
mining products. It was also supported by the strong increase in spending on infrastructure, especially
in the Franc Zone countries.
The rate of job loss fell in certain industrialised countries. Accordingly, the unemployment rate dropped
in the United States, falling from 9.0% in 2011 to 7.8% in 2012. In Japan, unemployment was 4.2%,
after 4.6% in 2011. On the other hand, in Europe, the job market situation remained a cause for
concern. In the United Kingdom, the unemployment rate remained high, at 7.8%, in 2012. In the Euro
Zone, it rang in at 11.7%, up a full percentage point compared to the previous year.
In a context of economic slowdown and underuse of production capacity, inflation continued to slow as
well. In advanced countries, the inflation rate stood at 2.0% in 2012, after 2.7% in 2011. In emerging
and developing countries, it fell from 7.2% in 2011 to 5.9% in 2012.
In terms of monetary policy, the central banks, taking account of the listless economy, chose to be
accommodating in their policies. Thus, the American Federal Reserve (FED), the Bank of Japan, the
European Central Bank (ECB) and the Bank of England all maintained their leading rates at levels close
to zero. The ECB, in particular, increased its cash injections and maintained its mechanism for the
purchase of securities. On 6 September 2012, it also set up a new conditional but unlimited programme
for the purchase of public debts, known as Outright Monetary Transactions (OMT). This decision, which
was applauded by the financial markets, has led to the easing of ten-year lending rates in the most
fragile countries of the Zone, such as Spain and Italy.
36
In terms of interest rates, the European Central Bank also reduced its leading rates by 25 basis points,
effective 11 July 2012, lowering the bid rate for the principal refinancing operations to 0.75%. For its
part, the American Federal Reserve (the FED) completed its government bond purchasing programme
and, on 14 September 2012, undertook to buy back 40 billion dollars in bonds backed by real estate
loans from financial institutions every month. The aim was to lower interest rates on real estate loans
and revive activity in the housing sector. Finally, the FED also stated its will to maintain the federal
funds target rate range between 0.00% and 0.25% up until the end of FY 2015. In emerging companies,
more flexible monetary policies were adopted in response to the slowdown in economic growth and the
uncertainties regarding the financing of their economies
On the foreign exchange markets, the euro suffered in 2012 from the difficulties experienced by the
Euro Zone in managing the sovereign debt crisis, concerns over the viability of the Zone, and sociopolitical tensions linked to the implementation of budgetary austerity policies in certain member States.
The euro exchange rate depreciated, on average, by 7.7% compared to the United States dollar and
respectively 7.6% and 6.6% compared to the yen and the pound sterling. Because it is nominally
pegged to the euro, the CFA franc experienced trends similar to that of the European currency in
relation to the other main currencies of industrialised countries.
In 2012, trends in the global financial markets were generally positive. The main stock market indexes
recovered gradually over the year, due to returning investor confidence in the macroeconomic policies
implemented in the Euro Zone. Thus, the EuroStoxx 50 index recorded an increase of 13.4%. In the
United Kingdom, the Footsie 100 index was up by 5.8%. In the United States, the Dow Jones and
NASDAQ indexes experienced similar trends, progressing respectively by 7.3% and 15.9%. In Japan,
the Nikkei 225 index experienced an increase of 22.9%.
Concerning raw materials, main commodities prices experienced different trends according to the
product. The situation was due to the trend in the gap between global supply and demand, whose
causes included, according to the specific case, the international crisis, the impact of the weather on
supplies and fears arising from geopolitical factors.
The prices of energy products remained high, and the index calculated by the IMF rose 0.7% year over
year compared to 2011, reflecting the impact of persistent geopolitical tensions in the Middle East. The
petroleum price index was up by 1.0% year over year.
On the other hand, the index of the price of raw materials (metals and agricultural produce) used as
inputs in industry was down by 15.5%, as the manufacturing sector was affected by a slowdown in
demand from China as well as by the situation in the Euro Zone. Similarly, the food price index was down
by 3.7%.
In keeping with the overall trends of the prices of agricultural products, the prices of most raw materials
exported by WAEMU countries experienced significant drops in FY 2012 compared to 2011 levels. On
average, in FY 2012, the global prices of these products fell by: 39.0% for cotton, 32.9% for palm kernel
oil, 24.1% for rubber, 21.8% for cashew nuts, 19.7% for cocoa, 11.4% for palm oil, and 6.0% for coffee.
On the other hand, gold continued to provide a safe haven in a general context of considerable
uncertainty, and its price rose by 6.4% year over year.
37
Table 1: Changes in annual average exchange rates (CFA francs per unit of currency)
2011
2012
Change (%)
Special drawing rights
(1 SDR)
744.4048
782.0216
5.05
US Dollar
(1 USD)
471.2335
510.5518
8.34
Swiss Franc
(1 CHF)
532.1735
544.2272
2.26
Pound Sterling
(1 GBP)
755.8153
808.9546
7.03
Japanese Yen
(1 JPY)
5.9117
6.4002
8.26
Source: BCEAO.
Table 2: Changes in quarterly average exchange rates (CFA francs per unit of currency)
FY 2011
1st quarter
2nd quarter
3rd quarter
4th quarter
(1 SDR)
749.7380
728.4245
739.6885
759.6967
US Dollar
(1 USD)
479.5007
455.8106
464.3286
486.5428
Swiss Franc
(1 CHF)
509.6395
524.1785
563.1016
533.6020
Pound Sterling
(1 GBP)
768.2255
743.0920
747.4442
765.1697
Japanese Yen
(1 JPY)
5.8271
5.5869
5.9757
6.2940
FY 2012
1st quarter
2nd quarter
3rd quarter
4th quarter
(1 SDR)
771.2048
782.6354
796.7789
777.4745
US Dollar
(1 USD)
500.4249
511.9065
524.6817
505.8664
Swiss Franc
(1 CHF)
543.0108
545.9484
545.0411
543.0108
Pound Sterling
(1 GBP)
786.0668
809.8435
828.7203
812.4313
Japanese Yen
(1 JPY)
6.3079
6.3940
6.6730
6.2401
Source: BCEAO.
1.2 - WAMU ECONOMIC AND FINANCIAL ENVIRONMENT
1.2.1 - Gross Domestic Product
Following a particularly difficult year in FY 2011, marked by a post-electoral crisis in Côte d’Ivoire and a
drought in the Sahel, the WAEMU member States resumed strong growth, driven by the implementation
of major development projects and private investments.
Despite the impact of an unfavourable international environment and internal shocks, the gross
domestic product in the Union progressed by 6.4% in 2012 compared to 0.7% a year earlier. The
rebound in growth was linked to significant economic recovery in Côte d’Ivoire, growth in mining
production due to the entry into production, in recent years, of several gold and oil mining projects, as
well as a recovery in agricultural production and stronger industrial production, in a context of increased
availability of electrical power.
38
As percentage
Graph 1: WAEMU real GDP growth rate
Source: BCEAO.
1.2.2 - Agricultural Production
The 2012/2013 crop year went well overall in the Union, thanks to the actions undertaken by the States
at the national and community levels to enhance food security and boost export production systems.
The year also benefitted from good weather and phytosanitary conditions. Rainfall was early, abundant
and well distributed over time and space. The total recorded for the season was close to the total for
2010, which is considered one of the rainiest years in the last decade. Heavy precipitation caused
flooding in some countries in the Union, particularly Benin, Niger and Senegal. However, the potential
for plant growth and development was maintained. Furthermore, the phytosanitary situation was
positive overall.
According to official estimates in January 2013, food crop production stood at 48,967,785 tonnes for
the 2012/2013 crop year, up 10.9% compared to the previous crop year. The best performances were
recorded in Senegal, Burkina Faso and Niger, where food crop harvests respectively increased by
43.2%, 31.4% and 28.7%. The trend was essentially due to the consolidation of millet and sorghum
production in those countries. In Mali, the 13.5% increase in food crop production was largely due to a
19.2% increase in rice production estimated at 2.1 million tonnes. In Guinea-Bissau, Togo and Côte
d’Ivoire, estimates showed respective production increases of 15.9%, 4.9% and 3.2%. Compared to
average production over the five previous crop years, the harvests of the 2012/2013 crop year showed
an increase of 18.5%.
39
In thousands of tonnes
Graph 2: Production of food crops
Benin
Burkina
Côte
d'Ivoire
GuineaBissau
2010 - 2011
2011 - 2012
Mali
Niger
Senegal
Togo
2012-2013
Sources: National marketing boards.
As for export crops, production of seed cotton in the Union totalled 1,648,263 tonnes, up 18.7%
compared to the previous growing year, due to the expansion of the areas sown and the States’ efforts
to support improved yields. The most substantial increases were recorded in Benin (20.0%), Burkina
Faso (24.4%) and Côte d’Ivoire (37.5%). Compared to average production over the five previous crop
years, the rate of increase in seed cotton harvests was 18.7%.
Due to the action undertaken to boost the coffee sector, harvests of the crop have come close to
reaching the levels achieved prior to the post-electoral crisis, at 132,501 tonnes for the 2012/2013 crop
year, compared to 51,238 tonnes the previous year. Available statistics on cashew nuts show an
increase of 12.3% in regional production, which totalled 771,330 tonnes, driven by the increased
harvests in Benin (+25.0%) and Côte d’Ivoire (+10.0%). In Guinea-Bissau, cashew harvests slid by
7.5%.
Cocoa production, which essentially took place in Côte d’Ivoire, marked a 10.6% drop, ringing in at
1,399,000 tonnes for the 2012/2013 crop year, due to the aging and lack of maintenance of the
plantations.
Groundnut production, on the other hand, stood at 1,933,976 tonnes, up 5.0% year over year. The
trend was principally due to the major upswing in harvests in Senegal (+31.3%), offset by a 26.3%
production drop in Niger.
40
In thousands of tonnes
Graph 3: Agricultural export production
Cocoa
Coffee
2010 - 2011
Cotton
2011 - 2012
Groundnuts
Cashews
2012-2013
Sources: National marketing boards.
1.2.3 - Mining
In terms of mining production, the situation in 2012 showed considerable contrast between products.
Phosphate mining totalled 2,306,484 tonnes, up 6.3% compared to 2011. The situation was due to a
22.3% production increase in Togo, owing to the modernisation of production equipment. In Senegal,
the tonnage mined slid by 2.3%. Uranium production increased by 9.9% in Niger, reaching 4,568.9
tonnes.
Gold production rose by 5.4%, reaching 100,175.7 kg. The increase in gold mining was due to the
increase in production by Mali (+10.1%) compared to 2011, due to the entry into production of the
Gounkoto mine. In Burkina Faso, production stood at 42,419.0 kg in 2012 compared to 38,749.0 kg the
previous year, for a 9.5% increase. In Niger, production was down by 15.6%, at 1,581.1 kg. In Côte
d’Ivoire, statistics available for the first nine months of FY 2012 showed an increase of 5.1%, bringing
cumulative production for the period to 9,903.1 kg, due to significant production increases by
EQUIGOLD MINES and Société des Mines d’ITY (SMI).
Available data on crude oil production in Côte d’Ivoire show a total figure of 9,623,810 barrels, down
22.3% compared to 2011, due to certain technical issues as well as to the natural decline of the oil
fields.
1.2.4 - Industrial production and retail trade turn-over
Industrial production in WAEMU countries maintained its positive trend in 2012. The index calculated
by the BCEAO recorded an average increase of 4.0% in 2012, compared to a growth rate of 2.4% in
2011. The buoyancy in industrial production can be explained by the 18.5% increase in the index of the
“Electricity, water and gas” sector. It is also due to the performance of the manufacturing sector (+5.2%)
and the mining sector (+5.2%).
41
On an individual country basis, increases in industrial production were observed in Benin (+15.8%),
Burkina Faso (+28.2%), Côte d’Ivoire (+9.0%), Togo (+8.9%), Niger (+2.4%) and Mali (+0.6%). On the
other hand, drops were recorded in Guinea-Bissau (-2.6%) and Senegal (-1.6%).
The retail trade turn-over index for the modern sector grew by an average of 15.1% across WAEMU
countries in 2012, compared to 8.2% in 2011. The overall increase in trade was notably due to an
increase in sales of petroleum products (+22.3%), personal clothing items (+17.6%) and automobiles,
motorcycles and spare parts (+12.2%).
On an individual country basis, sales were up in Guinea-Bissau (+42.6%), Côte d’Ivoire (+28.8%),
Benin (+26.1%), Burkina Faso (+18.3), Niger (+8.3%), Mali (+5.2%) and Senegal (+0.2%). However,
sales contracted in Togo (-2.7%).
1.2.5 - Price developments
The rate of increase of consumer prices slowed in 2012, following significant price increases in 2011.
The overall consumer price increase in WAEMU therefore fell from an average of 3.9% in 2011 to 2.4%
in 2012. The slowing of growth in inflation resulted from the dissipation of the impact of the postelectoral crisis in Côte d’Ivoire, which had caused price hikes in the country in 2011. It was also linked
to the drop in the price of petroleum products in Niger due to the start-up of domestic production of oil
and gas and the impact of measures implemented by certain countries to increase off-season food
production and cap increases in cereal prices.
However, price trends were also affected by an increase in local cereal prices due to decreased cereal
production in the 2011/2012 crop year and higher petroleum prices in most countries, due to rising
international crude oil prices, particularly in the first half of 2012, as well as the drop in the CFA franc
exchange rate compared to the dollar. Furthermore, petroleum product prices at the pump rose in
Benin, subsequent to a decrease in fuel subsidies in Nigeria in January 2012 and measures by the
Beninese Government against informal trade in petroleum products.
Table 3: Changes in consumer prices in 2011 and 2012 as a (%)
2011
2012
Annual average
Year-over-year
change as at the
end of December
Annual average
Year-over-year
change as at the
end of December
Benin
2.7
1.8
6.7
6.8
Burkina
2.8
5.1
3.8
1.7
Côte d'Ivoire
4.9
1.9
1.3
3.4
Guinea-Bissau
5.1
2.2
2.1
1.7
Mali
3.0
5.3
5.3
2.4
Niger
2.9
1.5
0.5
0.7
Senegal
3.4
2.7
1.4
1.1
Togo
3.6
1.4
2.6
2.9
WAEMU
3.9
2.5
2.4
2.8
Sources: National Institutes of BCEAO States in charge of Statistics.
42
1.2.6 - Public finance
Financial transactions by the countries of the Union in 2012 took place in a difficult context, marked by
pressures on spending due to the food crisis in many countries and increased social demand in order to
offset the rising cost of living. At the same time, increased public investments in infrastructure are
expected to continue in order to provide a foundation for sustainable growth.
Despite these constraints, public finances in 2012 showed an improvement over the previous year. The
overall deficit, based on commitments and excluding grants, was reduced. It was estimated at 2,189.9
billion compared to 2,352.8 billion the year before. In relation to the GDP, the deficit stood at 5.4% in
2012 against 6.4% in 2011. The underlying budget balance showed a deficit of 906.8 billion, which is
much lower than its level the previous year. However, this situation masks certain disparities.
Improvements were observed in Benin, Côte d’Ivoire, Mali and Senegal, while a deepening of the deficit
was seen in the other countries. The situation in Mali resulted from measures taken by the authorities
with a view to maintaining balanced budgets in a context of crisis.
This positive trend in public finance in 2012 can be ascribed to the efforts made by all of the States to
increase budgetary revenue, which was estimated at 7,768.3 billion at the end of December 2012, an
increase of 1,389.4 billion compared to the same period the previous year. This progress was notably
due to more energetic recovery of tax revenues in virtually all countries, thanks to reforms undertaken
in recent years to improve the efficiency of financial governance and broaden the tax base. The most
significant gains were recorded in Côte d’Ivoire (+49.4%) due to a significant boost in economic activity,
and in Burkina Faso (+28.1%) where income from the mining sector experienced strong growth. The
fiscal pressure rate in the Union stood at 17.0% compared to 15.6% in 2011, above the level reached
prior to the post-electoral crisis in Côte d’Ivoire.
Net expenditure and loans increased by 14.0%, from 8,731.8 billion at the end of December 2011 to
9,958.4 billion at the end of December 2012. This situation was due to an increase in current spending,
particularly the wage bill and interest charges on the public debt, which saw respective increases of
17.0% and 8.8%.
Capital spending grew by 451.3 billion to 3,011.3 billion in 2012, due in part to the continued
implementation of public investment programmes in the area of infrastructure. In relation to the GDP, it
stood at 7.5% compared to 7.0% in 2011. An analysis on a country-by-country basis revealed three
groups of countries. The first group comprises those countries where the most significant investment
efforts were recorded, i.e. Burkina Faso (11.2% of the GDP in 2012 compared to 9.9% in 2011), Côte
d’Ivoire (4.9% of the GDP in 2012 compared to 2.6% in 2011), Niger (11.7% of the GDP in 2012
compared to 7.1% in 2011) and Togo (8.8% of the GDP in 2012 compared to 8.3% in 2011). The second
group is made up of Senegal, where capital spending as a percentage of the GDP was nearly stable from
one year to the next (11.0% of the GDP in 2012 compared to 10.5% in 2011). Benin, Guinea-Bissau and
Mali, which form the third group, experienced a decline in their investment spending, respectively of 1.0,
3.5 and 6.3 percentage points of their GDP. The strong decreases observed in Guinea-Bissau and Mali
are linked to the socio-political crises the countries experienced in 2012.
The budget deficit of the Union in 2012 was 86.0% financed by external resources (donations and
loans). Net bank financing stood at 312.0 billion, up 93.2% compared to the previous year.
1.2.7 - Balance of payments
The external accounts of the countries of the Union have been prepared according to the methodology
of the sixth edition of the IMF Balance of Payments and International Investment Position Manual
(MBP6), beginning with the data for FY 2011 (see Box No. 2). On that basis, the estimates for FY 2012
show a less favourable external transaction profile than in 2011. Overall, the trend in foreign trade
reveals significant deterioration in the current and financial accounts, partially offset by an improvement
in capital account flows.
43
The deficit in the current account was expected to deepen by 113.6% in 2012, to reach 2,373.5 billion,
due to the deterioration of the balance of goods and services and primary income, whose impact was
offset by an increase in secondary income.
The trade balance showed a deficit of 530.7 billion in 2012, following a surplus of 407.8 billion in 2011,
due to an increase in imports (+18.1%) which was considerably higher than the increase in exports
(+8.9%).
The buoyancy in imports was supported by the acceleration of purchases of capital and intermediate
goods, the increase in purchases of foodstuffs and other consumer goods and the rise in the oil bill. The
trend in imports of capital and intermediate goods was linked to the continuation and intensification of
public and private investment, notably due to the implementation of major economic and social
infrastructure construction projects in Côte d’Ivoire and the development of new mining and petroleum
projects in several countries in the Union. Increased importation of foodstuffs and other consumer
goods reflected the efforts made to deal with the food crisis in Sahelian countries as well as the
improvement of household income in Côte d’Ivoire. The increase in the oil bill was chiefly due to
tensions on the international markets and the recovery in demand in Côte d’Ivoire, despite the increase
in the supply within the community, in line with the Société de Raffinage de Zinder (SORAZ)’s entry into
the production phase.
The trend in exports of good was positive, due to rising sales of gold and cotton, whose impact was
moderated by the drop in sales of cocoa and petroleum. Higher gold exports reflected the positive trend
in prices as well as the increase in production, due to the entry into production of the Gounkoto mine in
Mali and the achievement of full capacity in the Tongon mine in Côte d’Ivoire, despite the drop in the
production rate in Burkina Faso, due to social upheaval in the field. Where cotton is concerned, the rise
in sales was essentially due to a production increase of nearly 76.0% in Mali, marketed at prices well
above international market prices. On the other hand, the cocoa industry sales figure dropped
significantly (-20.2%) owing to lower international market prices and reduced quantities of exports. The
decrease in the amount of cocoa beans shipped abroad was in line with a return to normal, after the
exceptionally high level reached in 2011 and the dormant period observed on the plantations. As for the
drop in petroleum exports, it was due to the natural depletion of certain oil fields and stoppage of certain
wells for maintenance.
The deficit in the balance of services was accentuated under the impact of the increase in freight
charges related to the shipment of goods and other specialised services purchased from non-residents
by the rapidly developing mining and telecommunications industries.
The balance of the primary income account also continued deteriorate, in line with the payments of
dividends by the main export and telecommunications businesses, which experienced a positive trend
in their sales figures. On the other hand, the balance of the secondary income account increased due to
the impact of increased budgetary aid and support received in the framework of support for populations
suffering from the food crisis in Sahelian countries. Remittances from migrant workers also maintained
an upward trend, despite the context of economic crisis in the host countries. This situation was chiefly
due to the solidarity shown by emigrants towards their families, particularly in the countries affected by
food deficits and floods.
The deficit in the current account, in relation to GDP, excluding grants, was expected to stand at 7.6%
compared to 4.1% in 2011. The surplus in the capital account grew significantly, from 749.0 billion in
2011 to 3,625.0 billion in 2012, essentially due to debt cancellations granted Côte d’Ivoire and project
grants received by the States.
Thus, current and capital transactions taken together showed a surplus of 1,251.5 billion in 2012, after a
deficit of 364.5 billion the year before. This surplus made it possible to achieve a net reduction in external
financial commitments of 1,251.5 billion in 2012, compared to a net increase of 364.5 billion in 2011.
44
The trend in financial account transactions in 2012 reflected a decrease in net indebtedness in relation
to other investments, and net commitments relating to direct foreign investments and portfolio
investments were also on the rise. The trend in flows of “other investments” was attributable to public
sector financial transactions, in line with the debt cancellation granted to Côte d’Ivoire. The increase in
net commitments relating to direct foreign investments is linked to the continuation of mining and
petroleum investments in certain countries of the Union and the return of investors in Côte d’Ivoire,
thanks to numerous activities initiated by the national authorities.
In the light of these trends, the overall balance of payments of the WAEMU member States showed a
deficit of 261.1 billion in 2012, against a deficit of 10.4 billion in 2011. It was estimated that the balance
of payments showed a deficit in all countries of the Union in 2012, excepting Benin, Mali and Niger.
1.2.8 - Resource mobilisation and external debt position
The overall outstanding debt of all Union member States stood at 8,728.2 billion CFA francs at the end
of December 2012 compared to 11,810.3 billion one year prior, reflecting a drop of 26.1%. The
decrease in the debt is related to debt reduction for Côte d’Ivoire, after it reached the HIPC completion
point in June 2012.
Drawings on loans by the countries of the Union stood at 975.4 billion CFA francs against 1,222.0 billion
in 2011.
The ratio of outstanding debt to GDP was down, at 21.6% in 2012 compared to 32.1% the previous
year. On a country-by-country basis, it stood at 16.6% against 17.8% in 2011 in Benin, 23.3% against
23.9% in Burkina, 19.0% against 54.2% in Côte d’Ivoire, 36.0% against 33.9% in Guinea-Bissau, 26.3%
against 24.5% in Mali, 15.9% against 16.4% in Niger, 28.4% against 25.7% in Senegal and 14.0%
against 13.9% in Togo.
45
II - MONETARY POLICY IMPLEMENTATION
2.1 - MONETARY POLICY OBJECTIVES
In 2012, the BCEAO conducted its monetary policy in keeping with the objectives assigned by its new
Statutes produced by the Institutional Reform that entered into force in 2010. The main objective of the
monetary policy of the BCEAO is to ensure price stability, defined by the Monetary Policy Committee as
a year-over-year inflation rate within a range of 1.0% to 3.0%. Without prejudice to this objective, the
BCEAO provides its support for the economic policies of WAEMU with a view to sound and sustainable
growth. With this purpose in mind, a macroeconomic framework showing potential risks regarding price
stability and growth for the two coming years is prepared by the relevant departments of the BCEAO, in
order to provide reference points for the Monetary Policy Committee regarding future trends in the
economies of the Union. The macroeconomic framework for the year 2012 was based on the following
main assumptions:
At international level:
–
stagnation in global economic growth at around 4.0% in 2012, as in 2011, linked, on the one hand,
to the weakening of the economic fabric in developed countries due to the sovereign debt crisis
and, on the other hand, to a slowdown in the growth of emerging economies;
–
firm commodity prices, particularly on gold and cotton. According to projections made by the
BCEAO in October 2011, the average price of gold was forecast at 1,814.3 US dollars per ounce in
2012, up 15.2%. Cotton prices were expected to drop, while remaining at favourable levels, i.e.
108.1 US cents per pound. Cocoa prices were expected to drop in 2012 as they did in 2011,
reaching 128.2 US cents per pound. These trends could constitute an important factor in the
stimulation of production in the WAEMU member States;
–
resolution of the sovereign debt crisis in the Euro Zone, to preserve the stability of the European
currency. In this regard, forecasts were based on a euro exchange rate of 1.43 dollar, proposed by
the Eurosystem;
–
a moderate increase of approximately 2.9% in the average price per barrel of crude oil, expected to
stand at 100.5 dollars in 2012 against an increase of nearly 15.0% in 2011. The deceleration in oil
price increases was expected to take place in an environment marked by a slowdown in global
economic growth linked to persistent uncertainties surrounding the activities of the principal
economic powers (United States, European Union, China, etc.);
–
an increase of approximately 5.0% in the price of imported foodstuffs;
–
a rate of inflation in the Euro Zone, the primary trading partner of the Union, forecast at 2.0% in
2012.
Internally:
–
reduced cereal production during the 2011/2012 crop year, due to rainfall deficits recorded in certain
regions;
–
an increase in the area of 10.0% in food crop production in the Union during the 2012/2013 crop
year;
46
–
the States are expected to continue the efforts they have already undertaken in the context of the
fiscal administration reform and the creation of development infrastructure, particularly in the areas
of energy and roads;
–
easing of socio-political tensions in all countries and consolidation of economic activity in Côte
d’Ivoire, the principal economic driving force in the Union;
–
enhanced electrical power production and distribution capacities;
–
continuation of direct foreign investments in the mining sectors of the Union.
On that basis, the monetary equilibriums forecast for FY 2012 showed the following trends for the
Union:
–
an improvement of 312.9 billion in the net foreign position of the monetary institutions of the Union;
–
a 14.6% increase in internal credit, connected with 12.9% growth in credits to the economy and a
deterioration of 439.7 billion in the net position of the Governments;
–
a 12.3% increase in the money supply.
2.2 - MONETARY ACTION
The Central Bank’s actions in FY 2012 relied mainly on use of indirect instruments to regulate
liquidity.
2.2.1 - Interest rate policy
In a context characterised by controlled inflationist pressures and a positive outlook in terms of growth,
and with a view to taking account of concerns linked to the impact of the socio-political crises in Mali
and Guinea-Bissau and uncertainties generated by the international environment, the Central Bank
decided to lower its leading interest rates by 25 basis points to support the economy. The minimum bid
rate for open market transactions and the marginal lending rate (formerly known as the repo rate) were
respectively set at 3.00% and 4.00%, effective 16 June 2012.
2.2.2 - Open market operations
The Central Bank considerably increased the amounts of the cash injection operations carried out
through weekly and monthly bidding through its windows in 2012, to satisfy the growing cash needs of
credit institutions. Furthermore, the minimum bid rate, which had stood at 3.25% since 16 June 2012,
was lowered to 3.00% on 16 June 2012.
Government treasury bills and bonds represented most of the assets presented by credit institutions as
collateral for refinancing operations.
In 2012, Central Bank interventions through weekly calls for tenders took the form of average weekly
cash injections of 440.3 billion CFA francs, against 242.0 billion CFA francs in 2011. The amounts up for
adjudication ranged from 375.0 billion CFA francs to 550.0 billion CFA francs, according to the forecast
liquidity requirements of the banks.
The marginal interest rate ranged between 3.00% and 3.34%. It stood at 3.00% on 31 December 2012.
Requests filled at the one-month compartment of the market in 2012 increased to an average of 414.8
billion CFA francs against 176.8 billion CFA francs the previous year. The marginal rate for these
transactions rose gradually from 3.3101% on 10 January 2012 to 3.3600% on 2 May 2012, and then slid in
the wake of the lowering of the Central Bank leading rates, which reached 3.0000% on 31 December 2012.
47
Ultimately, cumulative outstanding advances on one-week and one-month windows stood at 956.9
billion CFA francs at the end of December 2012 (525.0 billion CFA francs for one-week maturity and
431.9 billion CFA francs for one-month), against 661.8 billion CFA francs at the end of December 2011
(350.0 billion CFA francs for one-week maturity and 311.8 billion CFA francs for one-month) for an
increase of 295.1 billion CFA francs (+44.6%).
No reverse repurchase transactions have taken place since January 2002.
2.2.3 - Actions through permanent refinancing windows
Assistance provided by the Central Bank for credit institutions through the marginal lending window
increased in FY 2012. Outstanding loans in this category rose from 61.6 billion in December 2011 to
92.8 billion in December 2012, for an increase of 31.3 billion. This situation was can be explained by
the increases experienced in Côte d’Ivoire (+15.9 billion), Mali (+11.0 billion), Burkina Faso (+3.2
billion), and Niger (+1.1 billion).
2.2.4 - Reserve requirements system
On 16 March 2012, the level of reserve requirement ratios applicable to the banks was set at 5.0% for
all banks in WAEMU, whereas it had stood at 7.0% since 16 December 2010.
Table 4: Reserve requirement ratios applicable to banks
Up to
15
Nov.
98
16 Nov.
to 15
Dec.
1998
16 Dec.
1998 to
15 April
2000
16 April
to 15
Aug.
2000
16 Aug.
to 15
Sept.
2000
16 Sept.
00 to 15
April
2002
16 April 16 March 16 June
02 to 15 04 to 15 2005 to
March
June
15 June
2004
2005
2009
16 June
2009 to
15 May
2010
16 May
to 15
Dec.
2010
16 Dec.
2010 to
15 March
2012
Since 16
March
2012
(As a percentage)
Benin
9.0
9.0
3.0
3.0
9.0
9.0
9.0
13.0
15.0
9.0
7.0
7.0
5.0
Burkina
9.0
9.0
3.0
3.0
3.0
3.0
3.0
3.0
7.0
7.0
7.0
7.0
5.0
Côte
d'Ivoire
9.0
1.5
1.5
3.0
3.0
5.0
5.0
5.0
5.0
5.0
5.0
7.0
5.0
GuineaBissau
5.0
5.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
5.0
7.0
5.0
Mali
9.0
9.0
3.0
3.0
3.0
3.0
9.0
9.0
9.0
7.0
7.0
7.0
5.0
Niger
5.0
5.0
1.5
3.0
5.0
5.0
5.0
5.0
9.0
7.0
7.0
7.0
5.0
Senegal
5.0
1.5
1.5
3.0
9.0
9.0
9.0
9.0
9.0
7.0
7.0
7.0
5.0
Togo
9.0
3.0
1.5
3.0
3.0
3.0
3.0
3.0
3.0
3.0
5.0
7.0
5.0
Source: BCEAO.
2.3 - TRENDS IN MONETARY AGGREGATES
The monetary situation in the Union in 2012 was characterised by an increase in the money supply,
subsequent to the increase in domestic credit. Overall, Central Bank interventions rose significantly
over the period. The growth in the money supply was attenuated by a decline in the net external assets
of the monetary institutions.
48
Table 5: Integrated monetary situation
2010
2011
2012
Change in 2012
Absolute
As a %
Billions of CFA francs
Net foreign assets
Central Bank
Banks
Domestic credit
5 636.1
5 839.4
5 578.3
-261.1
-4.5
5 554.6
5 903.9
5 527.6
-376.3
-6.4
81.5
-64.5
50.8
115.3
178.8
8 715.3
10 144.1
11 675.7
1 531.6
15.1
Net Position of Governments
1 906.5
2 330.4
2 855.8
525.4
22.5
Credits to the Economy
6 808.8
7 813.7
8 819.9
1 006.2
12.9
ASSETS = LIABILITIES
14 351.4
15 983.5
17 254.0
1 270.5
7.9
Money supply
12 313.0
13 669.9
14 995.7
1 325.8
9.7
Fiduciary circulation
3 557.4
3 675.8
3 893.1
217.3
5.9
Bank deposits
8 658.3
9 882.3
10 991.9
1 109.6
11.2
97.3
111.8
110.7
-1.1
-1.0
2 038.5
2 313.6
2 258.3
-55.3
-2.4
Deposits in national savings
and postal accounts
Other net items
Source: BCEAO.
2.3.1 - Net foreign assets
The net foreign assets of the monetary institutions stood at 5,578.3 billion at the end of December
2012, down 261.1 billion compared to the end of December 2011. The deterioration of the net foreign
position of the monetary institutions was driven by the Central Bank, whose net foreign assets slid by
376.4 billion to reach 5,527.6 billion, partially offset by a 115.3 billion increase in the foreign assets of
the banks.
Official foreign exchange reserves decreased by 242.2 billion, reaching 7,051.2 billion at the end of
December 2012. As a result, the Central Bank’s monetary cover stood at 105.5% against 109.1% in
2011. The issuing institution’s foreign commitments were up by 134.2 billion, reaching 1,523.7 billion.
A contraction in net foreign assets was observed in Côte d’Ivoire (-256.0 billion), Senegal (-51.2 billion),
Guinea-Bissau (-34.8 billion), Togo (-17.3 billion) and Burkina Faso (-2.7 billion), while an increase was
recorded in Benin (+68.9 billion), Niger (+167.9 billion) and Mali (+2.8 billion).
49
Table 6: Changes in net foreign assets by country
2010
2011
2012
BENIN
Net foreign assets
Central Bank
Banks
BURKINA
Net foreign assets
Central Bank
Banks
COTE D'IVOIRE
Net foreign assets
Central Bank
Banks
GUINEA-BISSAU
Net foreign assets
Central Bank
Banks
MALI
Net foreign assets
Central Bank
Banks
NIGER
Net foreign assets
Central Bank
Banks
SENEGAL
Net foreign assets
Central Bank
Banks
TOGO
Net foreign assets
Central Bank
Banks
WAMU*
Net foreign assets
Central Bank
Banks
728.6
506.3
222.3
717.0
352.6
364.3
785.9
245.4
540.5
647.5
300.8
346.8
681.6
275.3
406.2
678.9
233.9
445.0
1 385.4
1 351.9
33.6
1 812.9
1 644.1
168.9
1 556.9
1 296.6
260.4
93.3
64.4
28.9
119.3
95.4
23.9
84.5
65.0
19.6
726.0
552.2
173.8
693.9
584.9
109.0
696.7
542.1
154.7
292.9
292.6
0.3
263.5
265.2
-1.7
431.4
419.8
11.6
987.9
734.5
253.4
930.6
726.2
204.5
879.5
775.5
103.9
259.5
193.5
66.0
291.1
200.2
90.9
273.8
76.6
197.2
5 636.1
5 554.6
81.5
5 839.4
5 903.9
-64.5
5 578.3
5 527.6
50.8
(*): Including non-distributed assets and adjustments.
Source: BCEAO.
50
2.3.2 - Domestic credit
Compared to the end of December 2011, domestic credit experienced a rise of 1,546.1 billion or
15.2%, reaching 11,690.2 billion. This upswing was essentially attributable to the deterioration of the net
liability position of the Governments, reinforced by an increase in credits to the economy.
Graph 4: Domestic credit – WAMU = 11,690.2 billion CFA francs
Bénin
6,5%
N.R. & Aj.
15,4%
Burkina
9,7%
Togo
6,3%
Côte d'Ivoire
29,4%
Sénégal
19,2%
Niger
3,9%
Mali
8,9%
Guinée-Bissau
0,7%
Source: BCEAO. NB: N. D. & Adj. = Non-distributed and adjustments.
2.3.2.1 - Net position of the Governments
The net debit position of Governments vis-à-vis the banking system deteriorated by 535.9 billion, to
stand at 2,866.3 billion at the end of December 2012. This increase was due to the increase in bank
subscriptions to public security issues over the period and increased State recourse to IMF assistance.
Central Bank loans to the States, chiefly comprising consolidation of statutory advances, fell from 212.9
billion at the end of December 2011 to 192.5 billion in December 2012, for a decrease of 20.4 billion,
owing to their progressive absorption through reimbursements. Full settlement should take place at the
end of December 2012, but delays have been noted in certain countries.
51
Table 7: Review of changes in the net position of governments, by country
2010
2011
2012
BENIN
Net position of the government
-165.5
-97.2
-164.0
Public receivables and deposits
406.4
403.3
439.7
Debts of the State
240.9
306.1
275.7
16.7
-7.9
-47.1
257.7
318.3
382.3
Debts of the State
274.4
310.5
335.2
788.3
822.7
1 131.3
274.7
469.1
392.0
1 063.0
1 291.8
1 523.3
3.0
8.0
21.2
12.9
12.8
3.2
Debts of the State
15.9
20.7
24.3
-270.1
-203.2
-54.2
442.0
418.0
265.2
Debts of the State
171.9
214.8
211.1
BURKINA
COTE D'IVOIRE
Debts of the State
GUINEA-BISSAU
MALI
NIGER
4.1
15.8
-45.1
117.8
114.9
177.1
Debts of the State
121.9
130.7
132.0
200.3
164.8
101.1
346.0
405.7
505.3
Debts of the State
546.3
570.5
606.4
138.8
98.9
129.5
107.3
150.3
155.4
Debts of the State
246.1
249.2
284.8
SENEGAL
TOGO
Source: BCEAO.
2.3.2.2 - Credits to the economy
Outstanding credits to the economy progressed by 12.9% year over year, to stand at 8,823.9 billion as
at the end of December 2012. This increase was due to the upswing in ordinary loans (+12.4%) and in
seasonal credits (+38.7%). The rise in ordinary loans resulted chiefly from the assistance granted to
businesses in the energy, agro-industry, telecommunications, mining and trade sectors.
52
In Benin, outstanding credits to the economy progressed by 79.5 billion (9.4%), to stand at 924.4 billion
at the end of December 2012. This increase was essentially attributable to ordinary loans which
progressed by 65.9 billion. The rise in ordinary loans resulted chiefly from the assistance granted to
businesses in the agro-industry, petroleum product distribution, energy, telecommunications, public
works and civil engineering, general trade and services sectors. Medium- and long-term credits
increased by 79.7 billion, while short-term credits declined by 0.2 billion.
In Burkina Faso, credits to the economy stood at 1,181.2 billion, up 229.6 billion (24.1%) compared to
2011. This trend resulted from a progression of 224.3 billion in ordinary loans and an increase of 5.3
billion in seasonal credits. The rise in ordinary loans was due to new bank loans set up for mining and
cotton companies, as well as loans to businesses in the energy, hydrocarbon, telecommunications,
public works and civil engineering, agro-industry, general trade and services sectors. Short-term and
medium- and long-term credits increased respectively by 159.1 billion and 70.4 billion.
In Côte d’Ivoire, outstanding credits to the economy stood at 2,308.3 billion at the end of December
2012 against 2,052.1 billion in 2011. Ordinary loans were up by 221.0 billion in a context of recovery of
banking activities; the slowdown observed the previous year had been due to the post-electoral crisis.
Short-term credits and medium- and long-term credits increased respectively by 138.4 and 117.8 billion.
In Guinea-Bissau, credits to the economy stood at 64.2 billion at the end of December 2012, up 10.1
billion (18.7%) compared to 2011. This trend was completely attributable to seasonable credits which
progressed by 11.8 billion, while ordinary loans decreased by 1.7 milliard (-3.1%). New banks loans
were set up for cashew-harvesting businesses. Short-term credits and medium- and long-term credits
increased respectively by 9.3 billion and 0.8 billion.
In Mali, outstanding credits to the economy increased by 49.9 billion (4.8%) to 1,099.2 billion. The rise
was solely due to a 50.2 billion increase in ordinary loans. On the other hand, seasonal credits fell by
0.3 billion. The ordinary loans were granted to companies active in the fields of telecommunications,
energy, distribution of petroleum products, mining, and general trade. Short-term credits and mediumand long-term credits increased respectively by 39.1 billion and 10.8 billion.
In Niger, credits to the economy stood at 500.0 billion, up 97.4 billion (24.2%), due to a 97.0 billion
increase in ordinary loans. The increase in outstanding credits was essentially due to treasury
advances granted to oil, mining, telecommunications, and energy companies, the hotel industry and
service companies. Short-term credits and medium- and long-term credits increased respectively by
41.5 billion and 55.9 billion.
In Senegal, loans to the private sector increased by 191.8 billion (9.8%), reaching 2,144.8 billion at the
end of December 2012. The growth in ordinary loans (194.0 billion) was chiefly due to bank loans set
up for private-sector operators working in the hydrocarbon, agro-industry, manufacturing, energy,
telecommunications, real estate and services sectors. The increase in credits was driven by a 103.1
billion increase in short-term credits and an 88.7 billion increase in medium- and long-term credits.
In Togo, outstanding credits to the economy stood at 601.8 billion at the end of December 2012, up
95.8 billion compared to the end of December 2011. This trend was solely due to an increase in
ordinary loans. Short-term credits and medium- and long-term credits increased respectively by 47.2
billion and 48.6 billion, essentially linked to the increase in ordinary loans granted to companies
operating in the manufacturing, public works and civil engineering, and transportation sectors.
53
Table 8: Country trends in credits to the economy
2010
2011
2012
Millions of CFA francs
BENIN
Credits to the economy
757 818.0
844 960.0
924 440.0
Short-term credits
423 796.0
472 422.0
472 231.0
Medium- and long-term credits
334 022.0
372 538.0
452 209.0
770 614.9
951 598.7
1 181 172.0
Short-term credits
474 618.9
577 342.7
736 472.0
295 996.0
374 256.0
444 700.0
2 047 967.2
2 052 075.3
2 308 304.9
Short-term credits
1 372 544.2
1 399 838.3
1 538 243.9
675 423.0
652 237.0
770 061.0
34 036.0
54 110.0
64 224.0
Short-term credits
21 769.0
38 208.0
47 530.0
12 267.0
15 902.0
16 694.0
845 501.0
1 049 320.0
1 099 195.0
Short-term credits
518 699.0
670 412.0
709 512.0
326 802.0
378 908.0
389 683.0
347 148.0
402 607.0
499 986.0
Short-term credits
169 442.0
212 321.0
253 824.0
177 706.0
190 286.0
246 162.0
1 646 987.9
1 953 000.8
2 144 754.9
Short-term credits
829 293.9
997 311.8
1 100 381.9
817 694.0
955 689.0
1 044 373.0
358 757.1
506 027.3
601 800.2
Short-term credits
202 202.1
296 769.3
343 952.2
156 555.0
209 258.0
257 848.0
BURKINA
COTE D'IVOIRE
GUINEA-BISSAU
MALI
NIGER
SENEGAL
TOGO
Source: BCEAO.
2.3.2.3 - Trends in credits registered with the central credit register
The overall outstanding amount of credit registered with the central credit register stood at 7,007.6
billion at the end of December 2012, against 6,365.3 billion on 31 December 2011, for an increase of
642.3 billion (10.1%). During the period under review, short-term credits increased by 267.8 billion
5.9%) and medium/long-term credits, by 374.4 billion (20.3%).
54
The increase in the outstanding debt registered with the central credit register in 2012 was notably due
to growth in loans granted to the following sectors of activity:
–
“Wholesale and retail trade, restaurants and hotels” (+382.7 billion);
–
“Manufacturing industries” (+83.1 billion);
–
“Insurance, real estate and services to enterprises” (+69.1 billion);
–
“Community, social and personal services” (+65.7 billion);
–
“Buildings and public works” (+42.2 billion);
–
“Electricity, gas and water” (+22.7 billion);
–
“Transportation, warehousing and communications” (+4.8 billion).
However, a decrease was seen in the sectors of “Agriculture, forestry and fisheries” (-4.9 billion) and
“Extractive industries” (-23.1 billion).
At the end of December 2012, the overall outstanding amount of credit registered with the central credit
register was distributed as follows: Senegal (25.4%), Côte d’Ivoire (24.0%), Burkina Faso (16.4%),
Benin (11.7%), Mali (8.1%), Niger (7.1%), Togo (7.0%) and Guinea-Bissau (0.3%).
2.3.3 - Money supply and monetary base
In conjunction with the trends in its counterparts, the money supply grew by 9.8%, to stand at 15,010.2
billion at the end of December 2012. The increase in overall liquidity was driven by bank deposits,
which rose by 11.2%, as well as to fiduciary circulation, which gained 6.3%.
Compared to its level at the end of December 2011, the monetary base contracted by 0.9%, reaching
5,763.5 billion at the end of December 2012, due to a 19.8% decrease in bank reserves which the 6.3%
rise in fiduciary circulation was unable to offset.
55
Table 9: Change in the money supply by country
2010
2011
2012
BENIN
Money supply
1 274.7
1 377.7
1 463.0
346.1
376.8
398.5
Deposits with banks, post office and national savings banks
928.6
1 000.9
1 064.5
1 319.5
1 501.1
1 741.5
215.1
189.6
230.3
1 104.4
1 311.5
1 511.1
BURKINA FASO
Money supply
COTE D'IVOIRE
Money supply
4 152.3
4 595.7
4 910.6
1 638.2
1 555.3
1 590.5
2 514.1
3 040.4
3 320.1
GUINEA BISSAU
Money supply
123.6
173.7
162.8
64.1
85.9
83.4
59.5
87.8
79.4
MALI
Money supply
1 294.5
1 492.0
1 718.5
314.5
415.4
514.3
980.0
1 076.6
1 204.2
576.0
611.2
802.5
234.9
269.6
345.2
341.2
341.6
457.3
2 540.8
2 718.7
2 896.9
NIGER
Money supply
SENEGAL
Money supply
561.8
589.4
586.7
1 979.0
2 129.3
2 310.1
717.0
831.3
905.3
183.3
193.8
161.3
533.7
637.5
744.0
TOGO
Money supply
Source: BCEAO.
56
Graph 5: Money supply = 15,010.2 billion CFA francs
N.D. & Adj.
Togo
Benin
Burkina
Senegal
Niger
Mali
Côte d'Ivoire
Guinea-Bissau
1,1%
Graph 6: Monetary base = 5,763.5 billion
Togo
Togo
4,6%
N.D.
N.R.&&Adj.
Aj.
6,4%
Senegal
Bénin
Benin
8,9%
Burkina
6,4%
Sénégal
14,9%
Niger
Niger
8,1%
Mali
12,7%
Guinée-Bissau
1,7%
Côte d'Ivoire
36,3%
57
Graph 7: WAMU – integrated monetary situation
1600 0000
1400 0000
1200 0000
In millions of CFA francs
1000 0000
800 000
600 000
400 000
200 000
Net
Net foreign
foreign assets
assets
Net position of the Government
Credit
Credit to
to the
the economy
economy
Moneysupply
supply
Money
Source: BCEAO.
2.3.4 - Private savings collected by banks and savings banks
Savings mobilised by the banking system in the countries of the Union were estimated at 4,686.9 billion
on 31 December 2012, up by 469.5 billion or 11.1% compared to the level recorded one year prior. The
change was chiefly linked to term deposits and special accounts, which respectively progressed by
272.3 billion or 12.0% and by 197.2 billion or 10.1%.
58
Table 10: Trends, by country, in private savings collected by banks and savings banks
2010
2011
2012
In billions of CFA francs
BENIN
Private savings
Private savings/Money supply (%)
BURKINA
Private savings
COTE D'IVOIRE
Private savings
GUINEA-BISSAU
Private savings
MALI
Private savings
NIGER
Private savings
SENEGAL
Private savings
TOGO
Private savings
WAMU
Private savings
418.1
32.8
446.2
32.4
491.5
33.6
479.7
36.4
514.2
34.3
613.3
35.2
1 379.2
32.8
1 412.7
30.7
1 615.4
32.9
13.6
11.5
24.8
14.3
28.7
17.6
336.9
24.3
362.0
22.5
385.8
24.3
113.6
19.7
120.4
19.7
138.4
17.2
953.1
37.9
1 038.8
38.2
1 076.8
37.2
262.7
36.6
298.2
35.9
337.0
37.2
4 026.0
32.1
4 217.4
30.9
4 686.9
31.3
Source: BCEAO.
Graph 8: Domestic savings of individuals and private companies – WAMU = 4,686.9 billion
Togo
Togo
6,6%
Sénégal
24,1%
Niger
Niger
2,9%
Mali
Mali
8,5%
Guinea-Bissau
Guinée-Bissau
0,3%
Benin
Bénin
10,6%
Burkina
Burkina
12,1%
Côte
Côted'Ivoire
d'Ivoire
34,9%
Source: BCEAO. NB: N. D. & Adj. = Non-distributed and adjustments
59
2.3.5 - Central Bank financial assistance
Interventions by the Central Bank stood at 1,732.5 billion as at 31 December 2012, up 291.4 billion
compared to the level recorded at the end of December 2011. They comprised refinancing for banks
and bank-like financial institutions totalling 1,049.7 billion and financial assistance to States in the
amount of 682.8 billion. The change recorded reflected an increase of 326.3 billion in refinancing,
partially offset by a drop of 34.9 billion in financial assistance to States.
Table 11: Central Bank financial assistance
Dec. 2011 March 2012
June 2012
Sept. 2012
Dec. 2012
Loans to National Treasuries (a)
717.7
712.2
707.3
702.9
682.8
Total statutory assistance under Art. 16
(including consolidation)
212.9
207.4
202.5
198.1
192.5
Assistance under Article 13
0.0
0.0
0.0
0.0
0.0
Overdrafts on current accounts (Art. 14)
0.0
0.0
0.0
0.0
0.0
212.9
207.4
202.5
198.1
192.5
0.0
0.0
0.0
0.0
0.0
State securities
0.0
0.0
0.0
0.0
0.0
Consolidations
5.1
5.1
5.1
5.1
5.1
499.7
499.7
499.7
499.7
485.2
0.0
0.0
0.0
0.0
0.0
723.4
806.9
1 001.0
891.0
1 049.7
661.8
740.9
895.7
826.2
956.9
61.6
66.0
105.3
64.8
92.8
1 441.1
1 519.1
1 708.3
1 593.9
1 732.5
Quarterly variations (%)
18.0
5.4
12.5
-6.7
8.7
Annual variations (%)
29.0
37.6
48.2
30.5
20/02/14
Consolidated statutory overdrafts
Discounts on government papers (Art. 15)
Assistance backed by SDRs
Mobilisations of hypothecated bonds (Art. 12)
Loans to banks and bank-like financial
institutions (b)
Regional bidding window
Repo
Total interventions (a+b)
Source: BCEAO.
60
Claims on National Treasuries stood at 682.8 billion at the end of December 2012, against 717.7 billion in
2011, following reimbursements totalling 14.5 billion on assistance backed by SDRs as well as
reimbursements of direct consolidated monetary loans from the BCEAO to the States in the amount of 5.6
billion. Consolidated claims on the former Central Bank of Guinea-Bissau (former BCGB) and the former
National Credit Bank of Guinea-Bissau (former BCN) showed no change, with a residual outstanding balance
of 5.1 billion, year over year.
Refinancing of banks and bank-like financial institutions stood at 1,049.7 billion as at 31 December 2012
(representing 11.9% of credits to the economy), compared to 723.4 billion in 2011, showing an increase of
326.3 billion (+45.1%).
Assistance to banks and bank-like financial institutions through the regional bidding window stood at 956.9
billion and through the marginal refinancing facility window at 92.8 billion, against respective figures of 661.8
billion and 61.6 billion at the end of December 2011.
In all, the amounts granted by the BCEAO under assistance to National Treasuries and refinancing for banks
and bank-like financial institutions could be broken down per country as follows, at the end of December 2012:
Table 12: BCEAO interventions at the end of December 2012
Credits to the
economy
(refinancing)
Assistance to Government (including
Government bonds and consolidated
receivables)
Total
Total amount
in billions of CFA
francs
(including
consolidation)
Benin
312.1
34.5
0.0
346.6
Burkina
220.6
34.4
1.0
255.0
Côte d'Ivoire
113.3
353.5
164.1
466.8
10.4
14.8
1.1
25.2
Mali
115.7
51.6
0.7
167.3
Niger
38.2
60.0
22.9
98.2
Senegal
123.7
92.4
2.1
216.1
Togo
115.6
41.8
0.7
157.4
1 049.7
682.7
192.5
1 732.4
Guinea-Bissau
WAMU
Source: BCEAO.
61
Table 13: Review of trends in Central Bank assistance by country (in billions of CFA francs)
2010
BENIN
Treasury department
- Article 16 (including consolidation)
- Advances against government securities
- Assistance backed by SDRs
Banks and bank-like financial institutions
BURKINA
Treasury department
- Hypothecated bonds
COTE D'IVOIRE
Treasury department
GUINEA-BISSAU
Treasury department
- Consolidated loans
MALI
Treasury department
NIGER
Treasury department
SENEGAL
Treasury department
- Hypothecated bonds
TOGO
Treasury department
(a)
132.0
32.8
0.0
0.0
32.8
99.2
144.1
40.6
8.7
0.0
0.0
31.9
103.5
394.8
336.3
164.1
0.0
172.2
58.5
13.8
13.8
1.1
5.1
7.6
0.0
122.6
55.2
5.8
0.0
49.4
67.4
72.9
61.8
27.0
0.0
34.8
11.1
164.6
104.2
18.5
0.0
0.0
85.7
60.4
72.5
44.4
5.7
0.0
38.7
28.1
2011
(b)
265.5
35.5
0.0
0.0
35.5
230.0
193.5
39.3
4.9
0.0
0.0
34.4
154.2
409.5
359.0
164.1
0.0
194.9
50.5
18.0
15.0
1.1
5.1
8.8
3.0
130.6
55.7
3.3
0.0
52.4
74.9
97.4
64.1
25.9
0.0
38.2
33.3
224.0
103.5
10.4
0.0
0.0
93.1
120.5
102.6
45.6
3.2
0.0
42.4
57.0
2012
(c)
346.6
34.5
0.0
0.0
34.5
312.1
255.0
34.4
1.0
0.0
0.0
33.4
220.6
466.8
353.5
164.1
0.0
189.4
113.3
25.2
14.8
1.1
5.1
8.6
10.4
167.3
51.6
0.7
0.0
50.9
115.7
98.3
60.1
22.9
0.0
37.1
38.2
216.1
92.4
2.1
0.0
0.0
90.3
123.7
157.4
41.8
0.7
0.0
41.1
115.6
Change (c)/(b)
Absolute
81.1
-1.0
0.0
0.0
-1.0
82.1
61.5
-4.9
-3.9
0.0
0.0
-1.0
66.4
57.3
-5.5
0.0
0.0
-5.5
62.8
7.2
-0.2
0.0
0.0
-0.2
7.4
36.7
-4.1
-2.6
0.0
-1.5
40.8
0.9
-4.0
-3.0
0.0
-1.1
4.9
-7.9
-11.1
-8.3
0.0
0.0
-2.8
3.2
54.8
-3.8
-2.5
0.0
-1.3
58.6
as a %
30.6
-2.8
0.0
0.0
-2.8
35.7
31.8
-12.5
-79.6
0.0
0.0
-2.9
43.1
14.0
-1.5
0.0
0.0
-2.8
124.4
40.0
-1.3
0.0
0.0
-2.3
246.7
28.1
-7.4
-78.8
0.0
-2.9
54.5
0.9
-6.2
-11.6
0.0
-2.9
14.7
-3.5
-10.7
-79.8
0.0
0.0
-3.0
2.7
53.4
-8.3
-78.1
0.0
-3.1
102.8
Source: BCEAO.
62
Table 14: WAMU - Credits to the economy and refinancing
Dec.
March
June
Sept.
2011
2012
2012
2012
7 813.7
7 764.7
8 158.0 8 338.7
(including seasonal credits)
164.6
194.2
164.3
158.5
Change in credits to the economy (as a %)
3.6
4.8
5.1
2.2
Refinancing of credits to the economy
723.4
806.9
1 001.0
891.0
. Loans to banks and financial institutions
723.4
806.9
1 001.0
891.0
. Hypothecated bonds
0.0
0.0
0.0
0.0
Change in refinancing (as a %)
44.9
11.5
24.1
-11.0
Percentage of credits to economy refinanced
by the BCEAO (%)
9.8
10.4
12.3
Dec.
2012
8 819.9
228.3
5.8
1 049.7
1 049.7
0.0
17.8
10.7
11.9
Source: BCEAO.
Table 15: Breakdown of refinancing of credits to the economy by window
December 2011
September 2012
December 2012
(billions of
%
(billions of
%
(billions of
%
CFA francs )
CFA francs )
CFA francs )
Money market
661.8
91.5
826.2
92.7
956.9
91.2
Other ordinary windows
61.6
8.5
64.8
7.3
92.8
8.8
Exceptional window
0.0
0.0
0.0
0.0
0.0
0.0
Refinancing, PASFI securities
0.0
0.0
0.0
0.0
0.0
0.0
Refinancing, former ONCAD
0.0
0.0
0.0
0.0
0.0
0.0
securities
TOTAL
723.4
100.0
891.0
100.0
1 049.7
100.0
Source: BCEAO.
2.3.6 - Developments in reserve requirements
The number of banks subject to the reserve requirements system came to one hundred and seven
(107) at the end of December 2012. At the same date, three (3) bank-like financial institutions were also
subject to the reserve requirements system, a figure that remained unchanged from the previous year.
The amount of reserves required for banks stood at 608.8 billion in 2012, against 588.6 billion a year
earlier. Actual reserves increased by 71.4 billion, to reach 1,293.9 billion. The banks’ free reserves
increased, year over year, from 633.7 billion to 684.3 billion.
The average amount of required reserves in bank-like financial institutions reached 190.5 million in
2012, for accumulated reserves amounting to 238.8 million, thus showing a net total surplus of 48.3
million in 2012, against a net total surplus of 12.0 million the year before.
63
Table 16: Trends in reserve requirements of banks (in millions of CFA francs)
Period
Required Accumulated reserves
reserves
Total
including
securities
Gross
deficit
(1)
Gross
surplus
(2)
Net surplus (+)
or deficit (-)
(3) = (2)+(1)
16-12-2011 to 15-01-2012
725 972
1 444 197
0
-12 380
730 605
718 225
16-01-2012 to 15-02-2012
734 914
1 457 078
0
-12 177
734 341
722 164
16-02-2012 to 15-03-2012
779 714
1 425 929
0
-15 029
661 244
646 215
16-03-2012 to 15-04-2012
543 059
1 319 949
0
-8 993
785 883
776 890
16-04-2012 to 15-05-2012
543 333
1 269 851
0
-4 286
730 805
726 519
16-05-2012 to 15-06-2012
555 813
1 323 393
0
-8 757
776 338
767 581
16-06-2012 to 15-07-2012
563 554
1 301 169
0
-6 701
744 316
737 615
16-07-2012 to 15-08-2012
558 191
1 235 523
0
-11 454
688 786
677 332
16-08-2012 to 15-09-2012
546 297
1 234 726
0
-11 396
699 825
688 429
16-09-2012 to 15-10-2012
565 185
1 180 816
0
-10 570
626 201
615 631
16-10-2012 to 15-11-2012
633 909
1 186 816
0
-6 979
559 515
552 536
16-11-2012 to 15-12-2012
555 875
1 147 720
0
-13 664
596 228
582 564
Average
608 818
1 293 931
0
-10 199
694 507
684308
Source: BCEAO.
Table 17: Trends in required reserves accumulated by financial institutions
(in millions of CFA francs)
Period
Required
reserves
Accumulated
reserves
Gross
deficit
(1)
Gross
surplus
(2)
Net surplus (+)
or deficit (-)
(3) = (2)+(1)
01-01-2012 to 31-03-2012
187
4
-183
-183
01-04-2012 to 30-06-2012
209
146
-63
-63
01-07-2012 to 30-09-2012
183
181
-2
-2
01-10-2012 to 31-12-2012
183
624
Average
191
239
-83
441
441
441
48
Source: BCEAO.
2.3.7 - Interbank market transactions
In 2012, the trend in the WAMU interbank market showed an increase in the volume of operations and
continued relaxing of interest rates.
The average weekly volume of transactions, all maturities taken together, rose to 73.5 billion CFA francs
against 44.6 billion CFA francs in 2011. The operations covered maturities ranging from one (1) day to
twelve (12) months. One-day, one-week, two-week and one-month compartments were the most active,
representing respectively 10.7%, 58.3%, 14.5% and 12.3% of the average volume of transactions. No
transactions were recorded for nine-month maturities.
64
The average volume of interbank transactions remained relatively low, representing only 8.6% of the
average amount of BCEAO liquidity injections.
All financial centres in the Union participated in the interbank market transactions. The most active
centres in terms of supplying resources were Abidjan (32.8%), Cotonou (22.8%) and Lomé (16.5%).
The principal beneficiaries were Dakar (41.1%), Abidjan (20.8%) and Ouagadougou (16.3%).
Table 18: Variations in interbank rates (weighted average as a percentage)
1 day
1 week
2 weeks
1 month
January
4.2
3.8
4.9
4.6
February
4.9
4.3
4.6
5.0
5.0
5.0
March
4.0
4.7
5.1
4.8
4.7
5.7
April
4.3
4.5
5.1
5.2
4.9
4.8
May
3.8
4.3
5.4
5.2
5.4
4.8
June
4.4
4.0
5.5
5.1
5.2
5.5
July
5.0
4.0
5.6
5.1
5.2
5.9
August
3.7
4.5
4.9
5.1
4.7
September
4.1
3.9
5.5
5.2
5.0
October
4.0
3.8
5.4
5.3
5.7
November
4.2
3.8
5.3
5.2
5.4
6.5
December
01/04/00
3.7
5.3
5.3
4.8
5.8
4.2
4.0
5.2
5.1
5.2
5.1
Average
3 months
6 months
9 months 12 months
5.8
9.0
4.8
9.0
Source: BCEAO.
Table 19: Trends in interbank lending within WAMU in 2012 (in millions of CFA francs)
Average amounts
Average
outstanding
loans
Rate ranges
(as a %)
Loan terms
Total
Including WAMU
January
53 678
46 250
119 988
3.00 to 7.50
1 day to 6 months
February
73 944
57 881
131 012
3.00 to 7.00
1 day to 6 months
March
49 575
35 675
127 851
3.00 to 7.00
1 day to 6 months
April
43 625
33 725
127 397
3.25 to 7.25
1 day to 6 months
May
66 622
54 493
163 021
3.25 to 7.00
1 day to 6 months
June
91 799
78 083
183 958
3.00 to 9.00
1 day to 12 months
July
57 481
48 669
173 205
3.00 to 7.25
1 day to 6 months
August
45 750
35 620
171 442
3.25 to 6.00
1 day to 3 months
September
61 665
45 894
160 598
3.00 to 7.00
1 day to 6 months
October
94 488
66 938
190 900
3.00 to 7.25
1 day to 3 months
November
126 595
103 450
215 780
3.00 to 7.00
1 day to 6 months
December
116 447
91 565
199 320
3.00 to 7.00
1 day to 6 months
Average
73 472
58 187
163 706
Source: BCEAO.
65
2.3.8 - Public and private security market transactions
Issues of negotiable debt instruments and public securities, approved or assisted by the BCEAO,
amounted to 1,650.8 billion overall in 2012, against 4,354.6 billion in 2011. They included deposit
certificates amounting to 9.0 billion, financial institution (WADB) bills for 7.0 billion, Treasury bills for a
total of 1,051.6 billion and Treasury bonds amounting to 583.2 billion.
Issues of negotiable debt instruments amounted to 16.0 billion in 2012 against 70.5 billion in 2011. They
were distributed as follows:

one (1) line of deposit certificates in two (2) tranches, for a total amount of 9.0 billion, was issued
in Mali, with a maturity of seven (7) years;

one (1) line of financial institutions bills in the amount of 7.0 billion and with a maturity of 18
months was issued in Côte d’Ivoire in December 2012.
No issues of WADB bills or commercial papers were released.
Thus, at the end of December 2012, outstanding negotiable debt instruments amounted to 244.1 billion
against 246.6 billion at the end of December 2011, distributed as follows:

three (3) lines of deposit certificates from each of the following banks: CBAO-Sénégal (15.0 billion),
BRM-Sénégal (4.0 billion) and BIM-Mali (9.0 billion);

one (1) line of financial institutions bills issued by Alios Finances (7.0 billion);

six (6) lines of regional financial institution bills (WADB) with an outstanding total of 209.1 billion.
Fifty-four (54) public securities issues were released in 2012 for a volume of 1,634.8 billion against one
hundred and six (106) in 2011, for a total issued volume of 4,284.1 billion.
Thirty-nine (39) Treasury bills issues were made through adjudication at variable rates by seven (7)
States of the Union, for a total amount of 1,051.6 billion in 2012, against ninety-six (96) issues for a total
of 3,475.7 billion in 2011. The issues can be broken down as follows:

ten (10) by Benin, for a combined total of 246.0 billion;

four (4) by Burkina Faso, for an overall total of 96.7 billion;

three (3) by Côte d'Ivoire for a total amount of 131.5 billion;

seven (7) by Mali, for a combined total of 177.3 billion;

two (2) by Niger, for a total of 72.4 billion;

ten (10) by Senegal, for an overall total of 267.7 billion;

three (3) by Togo, for a total of 60.0 billion.
The average rates of return on the bills ranged between 4.1067% and 6.8525%.
66
As for the long-term compartment of the capital market, fifteen (15) Treasury bond issues were made
for a total amount of 583.2 billion, at rates ranging from 6.00% to 6.70%, against ten (10) issues in 2011
for a total of 808.4 billion in 2011. They can be broken down as follows:

one (1) by Burkina Faso, in an amount of 32.4 billion;

four (4) by Côte d'Ivoire for a total amount of 252.3 billion;

eight (8) by Senegal, for an overall total of 250.4 billion;

two (2) by Togo, for an amount of 48.1 billion.
Total outstanding public securities stood at 3,023.9 billion at the end of December 2012.
67
III - CURRENCY ISSUE AND PAYMENT SYSTEMS
3.1 - MANAGEMENT OF FIDUCIARY CIRCULATION
In FY 2012, the transactions carried out through the windows of the Central Bank were marked by a
surplus of outflows over inflows of banknotes and coins. Compared to 2011, the share of banknotes in
fiduciary circulation remained stable at 96.3%.
3.1.1 - Outflows and inflows through BCEAO windows
The volume of withdrawal and deposit transactions through Central Bank windows experienced a slight
increase in FY 2012.
Over FY 2012, outflows and inflows through Central Bank windows involved a total of 3,709.5 million
banknotes and coins, against 2,860.2 million units in the 2011 financial year, a 29.7% increase.
3.1.1.1 - Outflows
Outflows of banknotes in FY 2012 totalled 1,852.7 million vignettes (11,744.2 billion CFA francs),
against 1,402.3 million vignettes in 2011 (10,285.1 billion CFA francs), an increase of 32.1% in volume
and 14.2% in value.
The largest withdrawals were recorded in Côte d'Ivoire (30.2%), Burkina Faso (18.3%) and Senegal
(14.9%).
The volume of withdrawals of coins experienced a 45.0% increase over the period, from 82.0 million
units in 2011 to 118.9 million units in 2012. In terms of value, withdrawals of coins increased from 9.9
billion CFA francs in 2011 to 13.0 billion CFA francs in 2012.
Outflows could be broken down as follows, by country:
Table 20: Breakdown of outflows through BCEAO Branch windows
Côte
GuineaBenin
Burkina
Mali
Niger Senegal
d'Ivoire Bissau
Togo
Total
Bank-notes
Value
1 279 916 2 151 623 3 549 275 191 130 1 464 617 702 478 1 750 323 654 872 11 744 236
10.9%
18.3%
30.2%
1.6%
12.5%
6.0%
14.9%
5.6%
100.0%
Number
210.7
300.4
528.0
42.6
239.4
123.9
282.5
125.2
1 852.7
(%) Volume
11.4%
16.2%
28.5%
2.3%
12.9%
6.7%
15.2%
6.8%
100.0%
1 777
1 405
3 487
290
1 851
1 009
2 296
933
13 049
13.6%
10.8%
26.7%
2.2%
14.2%
7.7%
17.6%
7.2%
100.0%
17.2
13.9
28.1
2.1
20.0
8.6
18.7
10.4
118.9
14.4%
11.7%
23.7%
1.7%
16.8%
7.2%
15.7%
8.7%
100.0%
(%) Value
Coins
Value
(%) Value
Number
(%) Volume
Value in millions of CFA francs.
Number in millions of units.
Source: BCEAO.
68
Graph 9: Banknote inflows and outflows through BCEAO windows
35
30
As a percentage
En pourcentage
25
20
15
10
5
0
Bénin
Burkina
Côte d'Iv oire Guinée-Bissau
Entrées
Inflows
Mali
Niger
Sénégal
Togo
Sorties
Outflows
Source: BCEAO.
As a percentage
Graph 10: Coin inflows and outflows through BCEAO windows
Inflows
Outflows
Source: BCEAO.
70
3.1.1.2 - Inflows
Inflows of banknotes through Central Bank windows totalled 1,737.8 million banknotes (11,427.5 billion
CFA francs), against 1,369.3 million banknotes (10,175.5 billion CFA francs) in 2011, an increase of
26.9% in volume and 12.3% in value.
The largest deposits in terms of value took place in Côte d'Ivoire (24.4%), Burkina Faso (18.4%) and
Senegal (15.3%). Deposits of coins through the windows of the Central Bank rose from 6.7 million units
in 2011 to 11.1 million units in 2012, representing a 65.7% increase in volume over the period. In terms
of value, they stood at 3,969.0 million CFA francs in 2012 against 1,820.0 million CFA francs the year
before.
Inflows could be broken down as follows, by country:
Table 21: Breakdown of inflows through BCEAO Branch windows
Benin
Banknotes
Value
(%) Value
Number
(%)
Volume
Coins
Value
(%) Value
Number
(%)
Volume
Burkina
Faso
Côte
d'Ivoire
1 662 045 2 102 085 2 786 798
14.5%
18.4%
24.4%
238.1
288.5
403.0
GuineaBissau
Mali
153 522 1 512 527
1.3%
13.2%
33.5
226.7
Niger
Senegal
572 303 1 745 466
5.0%
15.3%
103.0
275.5
Togo
Total
888 767 11 423 513
7.8%
100.0%
158.5
1 726.8
13.8%
16.7%
23.3%
1.9%
13.1%
6.0%
16.0%
9.2%
100.0%
344
8.7%
1.5
199
5.0%
0.9
27
0.7%
0.3
295
7.4%
0.9
274
6.9%
0.7
323
8.1%
1.2
1 985
50.0%
4.3
520
13.1%
1.3
3 969
100.0%
11.1
13.1%
7.9%
2.7%
8.2%
6.6%
11.0%
38.6%
11.8%
100.0%
Value in millions of CFA francs.
Number in millions of units.
Source: BCEAO.
3.1.2 - Structure of fiduciary circulation
As at the end of December 2012, fiduciary circulation stood at 4,381.1 billion CFA francs against
4,099.4 billion CFA francs one year prior, for an increase of 6.9%. Large denominations made up
90.0% of banknotes in circulation as at 31 December 2012 against 91.5% over the same period in
2011.
70
Table 22: Breakdown of banknotes and coins in circulation
(In millions of CFA francs)
Denominations
Banknotes
10 000
5 000
2 000
1 000
500
Coins
5 000
500
250
200
100
50
25
10
5
1
Total
31/12/10
3 787 657
2 831 036
644 327
166 611
145 683
31/12/11
3 945 809
2 939 909
669 185
163 722
172 993
145 517
346
49 824
5 705
20 553
35 767
15 832
7 625
6 049
3 557
259
3 933 174
153 610
352
54 308
5 774
22 132
36 531
16 528
7 935
6 176
3 615
259
4 099 419
31/12/12
4 218 446
3 107 444
672 549
196 843
226 570
15 040
162 684
360
58 404
5 698
24 752
36 935
17 760
8 440
6 367
3 708
259
4 381 130
Source: BCEAO.
3.2 - PROCESSING OF PAYMENTS WITHIN WAMU
3.2.1 - Cross-border flows of banknotes through BCEAO Branch windows
Cross-border flows of banknotes resulting from sorting operations during the 2012 financial year totalled
2,846.0 billion CFA francs against 1,541.2 billion CFA francs the previous financial year, for an increase
of 84.7%. The banknotes moved principally included those issued by the Branches in Côte d'Ivoire
(42.4%), Benin (11.6%), Mali (10.2%), Burkina Faso (10.5%) and Togo (9.4%).
The Burkina, Benin, Togo and Mali Branches registered the largest cross-border inflows of banknotes,
with respective shares of 27.3%, 24.6%, 16.6%, and 13.1%.
Table 23: Cross-border flows of banknotes through BCEAO Branch windows
(in billions of CFA francs)
FY 2011
(1)
FY 2012
(2)
Variation
(3)=(2)-(1)
Inflows Outflows Balance Inflows Outflows Balance
Benin
483.7
208.0
275.7
700.5
330.5
370.0
Burkina
101.8
211.3 -109.5
777.9
269.2
508.8
Côte d'Ivoire
53.2
602.4 -549.2
206.7
1 206.6
-999.9
Guinea83.2
37.6
45.6
22.5
66.0
-43.5
Bissau
Mali
202.1
112.9
89.2
371.9
289.4
82.5
Niger
145.3
129.7
15.6
120.5
243.9
-123.3
Senegal
110.5
151.3
-40.8
174.9
172.4
2.4
Togo
429.2
155.7
273.5
471.2
268.2
203.0
WAMU
1 609.0
1 609.0
2 846.0
2 846.0
-
Inflows Outflows Balance
216.8
122.5
94.3
676.1
57.8
618.3
153.5
604.2
-450.7
-60.7
28.4
-89.1
169.8
-24.8
64.4
42.0
1 237.0
176.4
114.2
21.1
112.5
1 237.1
-6.7
-138.9
43.2
-70.5
-0.1
Source: BCEAO.
71
3.2.2 - Flows among WAMU member States
Capital flows between West African Monetary Union (WAMU) States slid by 620.1 billion or 4.0% to
15,069.5 billion in 2012, against 15,689.6 billion the year before. This slowdown was essentially due to
a 94.5% deterioration in net flows of capital to Burkina, and declines of 39.3% in net flows of capital to
Côte d’Ivoire, 37.7% in net flows to Mali and 38.1% to Togo.
In Benin, the negative balance of capital flows decreased to stand at 171.1 billion in 2012 against
185.2 billion in 2011, for a decrease of 14.1 billion in net flows of transactions, due to drops of 4.0% in
inflows and 4.3% in outflows.
In Burkina, the deficit in net flows of capital exchanges nearly doubled year over year from 85.6 billion
in 2011 to 166.5 billion in 2012, an increase of 80.9 billion due to a stronger increase in outflows as
opposed to inflows of funds.
In Côte d’Ivoire, the downward trend in the positive balance of net financial flows of intra-community
exchanges continued in 2012 to stand at 399.3 billion against 657.7 billion in 2011. This contraction was
due to the combined impact of the decrease of 1,050.4 billion or 22.7% in funds received from other
countries of the Union and, to a lesser extent, to the drop of 792.0 billion in outflows of capital. Capital
received by the Ivoirian government totalled 3,578.9 billion in 2012 against 4,629.3 billion in 2011.
Outflows stood at 3,179.6 billion in 2012 against 3 971.6 billion on year prior.
In Guinea-Bissau, the positive balance of net capital flows, recorded at 16.5 billion the year before,
contracted in 2012 to stand at 2.1 billion, a decline of 87.3% caused by a contraction of 31.3 billion in
receipts, which dropped from 174.4 billion in 2011 to 143.1 billion a year later.
In Mali, the negative balance of net capital flows increased to 247.3 billion in 2012 against 179.6 billion
in 2011, for a deterioration of 37.7%, linked to the combined effects of the decline of 186.2 billion or
12.4% in inflows, which fell from 1,497.6 billion in 2011 to 1,311.4 billion in 2012 and of 118.5 billion or
7.1% in outflows, which stood at 1,558.7 billion in 2012 against 1,677.2 billion the year before.
In Niger, the balance of net financial flows went from a deficit of 25.8 billion in 2011 to a surplus of
66.4 billion in 2012, for an improvement of 92.2 billion or 357.4%, notably due to the combined impact
of a 29.8 billion increase in inflows and a 62.4 billion decrease in outflows.
In Senegal, the trend towards a surplus in capital exchanges observed in 2011 was consolidated in
2012. Indeed, the balance of net intra-community flows of capital rose to 723.7 billion in 2012 against
651.0 billion the year before, for an improvement of 72.7 billion, notably linked to an increase in inflows.
During the period under review, the volume of capital received from other WAMU countries increased
by 742.6 billion. Outflows of capital to other countries progressed by 669.6 billion.
In Togo, the balance of net flows of capital remained negative, growing from 267.4 billion in 2011 to
369.2 billion in 2012, due to the impact of increased outflows to other countries of the Union.
72
Table 24: Flows among WAMU member countries (in billions of CFA francs)
BENIN
BURKINA
CÔTE D'IVOIRE
GUINEA-BISSAU
MALI
NIGER
SENEGAL
TOGO
HEADQUARTERS
TOTAL
Transactions 2011
Net flows
Received
Sent
(1)
2 015.1
2 200.3
-185.2
2 053.9
2 139.5
-85.6
Transactions 2012
Net flows
Received
Sent
(2)
1 934.2
2 105.3
-171.1
1 708.1
1 874.6
-166.5
Variations
Value
%
(2)–(1)
14.1
7.6
-80.9
-94.5
4 629.3
174.4
1 497.6
626.5
3 971.6
157.9
1 677.2
652.3
657.7
16.5
-179.6
-25.8
3 578.9
143.1
1 311.4
656.3
3 179.6
141.0
1 558.7
589.9
399.3
2.1
-247.3
66.4
-258.4
-14.4
-67.7
92.2
-39.3
87.3
-37.7
357.4
2 662.9
1 512.7
517.2
15 689.6
2 011.9
1 780.1
1 098.8
15 689.6
651.0
-267.4
-581.6
0.0
3 405.5
1 771.3
560.7
15 069.5
2 681.8
2 140.5
798.1
15 069.5
723.7
-369.2
-237.4
0.0
72.7
-101.8
344.2
0.0
11.2
-38.1
59.2
0.0
Source: Statement of inflows and outflows within WAMU.
3.3 - PROCESSING OF EXTERNAL PAYMENTS
3.3.1 - Foreign banknote transactions
As at 31 December 2012, the total exchange value of the aggregate cash balance of BCEAO Branch
Offices in euro notes amounted to 15.8 billion CFA francs against 4.8 billion CFA francs the previous
year. Over the past financial year, the exchange value of orders for euro notes stood at an exchange
value of 14.0 billion CFA francs compared to 8.3 billion CFA francs over the same period in FY 2011.
There were no repatriations of euro notes in 2012, whereas the exchange value of 20.7 billion CFA
francs in euro notes was repatriated to the Banque de France the previous year.
3.3.2 - Non-cash money transfers
Payment flows between WAMU and outside countries through the BCEAO resulted in net outflows of
foreign currencies equal to 550.1 billion CFA francs after a foreign currency deficit of 37.4 billion in 2011
and a surplus of 60.0 billion in 2010. This accentuation of the deficit in 2012 was mainly due to a drop in
transfers received by national treasury departments. Transfers issued in FY 2012, estimated at 3,898.7
CFA francs, were chiefly initiated by banks (3,078.5 CFA francs) and national treasury departments
(716.9 billion CFA francs). The distribution of inflow transfers, which are estimated at 3,348.0 CFA
francs, followed a similar pattern, i.e. 2,034.0 billion CFA francs for banks and 1,155.8 billion CFA francs
for treasury departments.
Transfers issued by banks through the BCEAO increased by 392.0 billion CFA francs (+14%) in 2012,
reaching 3,078.5 billion CFA francs against 2,686.5 billion CFA francs in 2011, notably stimulated by the
combined increase in imports of capital equipment and intermediate goods and in payments for
services (+258.5 billion CFA francs, +48.7%). On the other hand, a decrease of 23.3 billion CFA francs,
or -1.9%, compared to 2011, was observed in requests backed by coverage of petroleum product
imports.
Transfers received by banks stood at 2,034.0 billion CFA francs in 2012, after reaching a level of
1,593.5 billion CFA francs in 2011, for an increase of 440.6 billion CFA francs (+27.6%). Transfers
received were chiefly fed by repatriation of revenue from uranium exports (342.5 billion CFA francs),
cotton exports (264.5 billion CFA francs) and various other products (648.5 billion CFA francs).
All told, net bank transfers for FY 2012 showed a negative balance of 1,044.5 billion CFA francs, for an
improvement of 48.6 billion CFA francs in the balance compared to FY 2011.
73
Transfers issued by national treasury departments totalled 716.9 billion, up 97.7 billion CFA francs
(+15.7%) compared to 2011. They chiefly concerned payments of foreign debts by the member States
of the Union, as well as payments for various services and supplies for diplomatic representations.
Transfers received by national treasury departments stood at 1,155.8 billion CFA francs, down
451.9 billion CFA francs compared to 2011. Transfers received included funds generated by budgetary
support, project aid, and various loans and grants from donors. It should be noted that the strong
increase recorded in 2011 was essentially due to aid resources granted to Côte d’Ivoire by the
international community following the post-electoral crisis of 2010. Furthermore, the drop in transfers
received in 2012 was aggravated by the impact of the socio-political crisis experienced by Mali since
the first quarter of the year.
In all, net transfers to and from national treasury departments showed a surplus of 438.9 billion CFA
francs against a surplus of 988.5 billion CFA francs in 2011.
Table 25: Transfer flows via the BCEAO - FY 2012
Transfers received
Transfers sent
Balance
Banks
Treasury departments and
public agencies
Various economic agents
TOTAL
2011
1 593.5
2012
2 034.0
2011
2 686.5
2012
3 078.5
2011
-1 093.1
2012
-1 044.5
1 607.8
1 155.8
619.3
716.9
988.5
438.9
125.5
158.2
58.3
103.2
67.2
55.0
3 326.7
3 348.0
3 364.1
3 898.7
-37.4
-550.6
Source: BCEAO.
3.4 - OPERATION OF PAYMENT SYSTEMS
In the framework of the continued modernisation of WAEMU payment systems, FY 2012 was marked
by the following major activities:

implementation of mobile banking development actions in WAEMU, marked by the organisation of a
concertation meeting for regional stakeholders;

organisation of a seminar on the evaluation of the 2007-2012 plan of action to promote use of
banking services and cashless means of payment;

launching of several studies on payment systems, focusing on the connection of Decentralised
Financial Systems (DFS/SFD) to payment systems, the evaluation of conditions for more active
participation by National Treasury Departments and Community Financing Institutions in payment
systems, and the commencement of a survey of users of payment systems with a view to
identifying their concerns and analysing their needs;

awareness for public administrations and major billers of WAEMU on use of electronic payment
methods.
Activities relating to payment systems operation in 2012 focused on the following points:

the WAEMU Automated Transfer and Settlement System (STAR-UEMOA);

the WAEMU Automated Interbank Clearing System (SICA-UEMOA);
74

the regional interbank electronic banking system;

Payment Incident Centralisation (PIC / CIP);

monitoring of payment systems;

the legal and regulatory framework of payment systems.
3.4.1 - WAEMU Automated Transfer and Settlement System (STAR-UEMOA)
The WAEMU Automated Transfer and Settlement System (STAR-UEMOA), is a system designed for
gross, real-time processing of system-wide transfer operations and buy-back transactions for SICAUEMOA, as well as regional inter-bank electronic banking and the Regional Stock Exchange Market
(BRVM).
As at 31 December 2012, the performance of STAR-UEMOA was satisfactory overall and the main
statistics generated over the year were as follows:

two new banking institutions entered the system, bringing the total number of participants to 107;
the average daily number of transactions processed grew by 26.6% from 1,531 in 2011 to 1,939 in
FY 2012;

the rate of rejection for insufficient funds remained quite stable, with an average of 0.1% over the
last five years, well below the maximum standard of 1.0%;


average transaction processing time stood at 41 seconds in 2012.
75
Table 26: Trends in selected STAR-UEMOA indicators in 2012
Month
January
February
March
April
May
June
July
August
September
October
November
December
Overall average
Daily average
number of
payments
1 977.2
2 120.5
2 200.1
1 598.4
2 054.3
1 994.0
2 008.6
1 986.3
1 804.6
1 947.6
1 678.8
1 899.9
1 939.2
Daily average
Daily average
value of
liquidity in
payments (in
banks (in
billions of CFA) billions of CFA)
532.0
1 175.8
549.3
1 188.2
546.1
1 172.6
530.9
1 119.1
607.4
1 058.6
580.6
991.4
567.8
1 013.1
522.1
1 005.2
484.4
920.6
472.1
810.6
512.8
916.1
571.4
1 019.8
539.7
1 032.6
Average
financial
rejection rate
(as a %)
0.18%
0.14%
0.07%
0.17%
0.13%
0.08%
0.11%
0.08%
0.08%
0.10%
0.17%
0.09%
0.12%
Average time of
settlement per
transaction (in
seconds)
42
48
29
49
44
33
33
39
41
53
47
37
41
Source: BCEAO.
During the 2012 financial year, a committee was set up to consolidate the back-up mechanism for the
critical systems of the BCEAO, notably including STAR-UEMOA. In addition, work continued to put in
place the Business Continuity Plan (BCP).
In the framework of consolidation of STAR-UEMOA and improvement of the services provided for its
participants, implementation of the following measures continued:

the final phase of testing of an intra-day advance mechanism, with a view to enabling the Central
Bank to provide cash to participants with cash requirements, against securities as collateral. The
mechanism should enter into production in 2013;

enhancement of the STAR-UEMOA management and backup system.
3.4.2 - WAEMU Automated Interbank Clearing System (SICA-UEMOA)
SICA-UEMOA is a mass clearing system that handles cashing of cheques, small money transfers (less
than 50 million CFA francs), promissory notes, bills of exchange and draw-down notices presented by
participants.
At the end of financial year 2012, SICA-UEMOA had recorded a significant increase in the number of
participants and the volume of transactions.
In terms of participation, the number of participating institutions rose from 117 in 2011 to 120 in 2012,
notably with the entry into production of the GT Bank in Côte d’Ivoire, CBAO BF, the BGFI Bank and the
participation of the Burkina Public Treasury Department. In Benin, African Investment Bank (AIB) was
excluded from the system after its accreditation was withdrawn.
In terms of transactions, there was an increase of more than 25% both in volume and in value. The total
number of exchanges stood at 9,032,513 transactions for a value of 30,134 billion CFA francs, with
strong increases in Burkina, Côte d’Ivoire and Togo. Cheques were the most commonly used
instrument with 80% of the volume of transactions.
76
For financial year 2013, the actions envisaged mainly focus on continuing projects aimed at improving
and optimising the running of the system and ensuring its security in operational and technical terms.
With this in mind, the following actions are planned:

launching a project to centralise national and sub-regional systems at BCEAO Headquarters.
Centralisation meets a need for increased efficiency and better system management, in addition to
reducing operating costs and enabling the implementation of the backup mechanism. The project
was expected to make considerable progress in financial year 2013;

setting up a guarantee fund whose regulations are currently pending validation;

continuing programmes to end paper exchanges during clearing and move to exchanges of
scanned images only, particularly in Benin, Côte d’Ivoire and Senegal;

implementing the project of connecting all national treasury departments and certain postal financial
services to the payment systems.
Table 27: Characteristic data on SICA-UEMOA exchanges as at 31 December 2012
Number of transactions exchanged
Value of transactions exchanged
(in billions of CFA francs)
Benin
FY 2011
348 745
FY 2012
370 323
% Change
6.19%
FY 2010
1 759
FY 2011
2 060
Burkina
658 878
796 064
20.82%
2 447
3 274
33.80%
2 604 078
4 189 068
60.87%
7 469
11 810
58.12%
12 005
11 901
-0.87%
50
53
6.00%
Mali
516 252
493 101
-4.48%
2 620
3 049
16.37%
Niger
135 043
149 651
10.82%
711
799
12.38%
2 618 005
2 677 199
2.26%
7 307
7 681
5.12%
276 350
331 258
19.87%
1 060
1 324
24.91%
2 948
13 948
65.10%
18
84
356.01%
7 172 304
9 032 513
25.94%
23 441
30 134
28.55%
Country
Côte d'Ivoire
Guinea-Bissau
Senegal
Togo
Sub-regional
WAEMU Total
% Change
17.11%
Source: BCEAO.
3.4.3 - Regional interbank electronic banking system
In the framework of the promotion of electronic payment, the WAEMU Council of Ministers asked the
BCEAO to seek the ways and means for greater involvement of WAEMU public administrations in
electronic banking. Therefore, the BCEAO assisted the WAEMU interbank electronic banking group
(GIM-UEMOA) in the organisation of a series of awareness meetings for the public administrations of
the Union to promote use of the services offered by the regional interbank electronic banking system.
These meetings were held between 2011 and 2012 in all WAEMU countries.
It emerged from those meetings that the public financial administrations had real needs in terms of the
modernisation of their payment services (grants, pensions, salaries, taxes, income taxes, etc.). The public
and private sectors, represented by various businesses in the fields of telecommunications, electricity and
water companies, education, health and hydrocarbons also expressed a strong demand for electronic
banking services.
A plan of action is being prepared for the implementation of the measures identified to support public
administrations in terms of using electronic banking and mobile phone banking services to conduct their
financial transactions.
77
The major challenges to be met in FY 2013 in terms of regional interbank electronic banking are linked to:

commercial deployment of mobile phone banking services by GIM-UEMOA member banks;

popularisation of multiple electronic payment instruments (cards, mobile phones, Internet);

development of an electronic payment activity;

emergence of a competitive regional supply of mobile banking services.
3.4.4 - Payment Incident Centre (PIC / CIP)
The main activities carried out by the Payment Incident Centre (PIC / CIP) during the 2012 financial year
focused on:
 Reviewing the mechanism, as well as ongoing actions and the difficulties encountered by the
National Directorates in the framework of the PIC / CIP mechanism. A plan of action has been
prepared for that purpose. The actions pertained to public consultation of PIC / CIP, connection of
public prosecutors’ offices to the Payment Incident Centre, difficulties experienced by credit
institutions in uploading data to the Centre and continued work towards the signing of service
provision contracts with certain National Directorates. As for financial year 2013, provisions have
been made in the BCEAO budget for 2013 for the continued execution of the planned actions;

follow-up on declarations and claims by account-keeping institutions (ETCs);

the effective entry into production of Diamond Bank Bénin, Togo branch. It should also be noted that,
during the financial year, a number of several new ETCs entered into production in the PIC / CIP,
notably BGFI Bank Côte d’Ivoire and GTBank Côte d’Ivoire.
On 31 December 2012, the number of accounts backed by payment instruments declared in the
PIC / CIP, across the Union, totalled 3,187,777 compared to 3,140,620 in 2011 and 2,214,548 in 2010.
The rate of risk of confusion due to similar names (homonymy) remained acceptable, at 0.39%. The
following table summarises declaration rates and cases of homonymy as at 31 December 2012.
Table 28: Data from the new PIC/CIP application as at 31 December 2012
Number of
Number of
accounts held Declaration rate
Number of
Country
accounts
(2)
consultations
declared (1)
Benin
378 233
463 006
81.69%
15 453
Burkina Faso
551 456
868 441
63.50%
5 288
Côte d'Ivoire
736 457
1 042 027
70.68%
5 700
Guinea-Bissau
73 126
77 384
94.50%
156
Mali
692 989
740 624
93.57%
2 706
Niger
106 435
145 652
73.07%
1 554
Senegal
451 352
564 123
80.01%
32 576
Togo
197 729
221 946
89.63%
2 514
TOTAL
3 187 777
3 943 743
80.83%
65 947
Rate of
homonymy
0.55%
0.11%
1.23%
0.31%
0.09%
0.51%
0.05%
0.28%
0.39%
(1) Accounts backed by payment instruments and registered in the PIC / CIP.
(2) Accounts backed by payment instruments.
Source: BCEAO.
78
3.4.5 - Monitoring of payment systems
The BCEAO has been entrusted with the monitoring of payment systems in the Union pursuant to
Article 9 of its Statutes and to the provisions of Regulation No. 15/2002/CM/UEMOA of 19 September
2002 on payment systems in the WAEMU member States. According to the terms of Title 1, Article 3, of
said regulation, “the Central Bank ensures the effective operation and the security of payment systems.
It takes all the necessary measures to organise and ensure the efficiency and soundness of payment
systems through interbank clearing and other payment systems within the Union and with outside
countries”. The primary objective pursued by the BCEAO through its payment system monitoring
mission is to maintain financial stability and promote efficient, reliable and secure payment systems
within WAEMU.
In financial year 2012, payment systems were monitored on the basis of a plan that focused on:

ongoing monitoring of the effective operation of the payment systems managed by the BCEAO
(STAR-UEMOA and SICA-UEMOA);

supervision of electronic money institutions.
As regards monitoring of the effective operation of the payment systems managed by the Central Bank,
monitoring was carried out on the basis of the fundamental principles adopted for that purpose under
the aegis of the Bank for International Settlements. In the framework of that exercise, recommendations
were issued in monthly reports and transmitted to systems managers for implementation.
As to the monitoring of electronic money institutions, three audit missions were organised with the
participation of the Office of the Secretary General of the Banking Commission. The audit conclusions
revealed nonconformities in certain transactions with the framework governing the electronic money
activity, thereby justifying the setting in place of a plan of action for their correction.
For FY 2013, the priority focus will be on improving the conformity of WAEMU payment systems and
instruments with international standards and a resilience assessment of SICA-UEMOA and STARUEMOA. On that basis, the principal actions pertaining to payment system monitoring will include:

finalisation of the new framework for supervision of payment systems and instruments;

a more detailed analysis of the risks linked to STAR-UEMOA, SICA-UEMOA and electronic money
issuing systems through quarterly supervisory reports;

monitoring of electronic money issuance activities and enforcement of regulations pertaining thereto
in WAEMU.
The BCEAO will also monitor the implementation of the recommendations put forward by the seminar
on “Supervision of fast money transfer systems” (Surveillance des Systèmes de Transfert Rapide
d'Argent) held in Dakar in 2011.
3.4.6 - Legal and regulatory framework
Reflection on the legal and regulatory framework focused on two main aspects, to wit:

revision of the Instruction on issuance of electronic money;

institutional anchoring of electronic money institutions.
79
With regards to the Instruction on issuance of electronic money, the regional concertation on mobile
banking gathered suggestions from the stakeholders on potential ways of improving the instrument. This
contribution was enriched by the conclusions drawn from study trips conducted at the Central Banks in
Kenya and the Philippines, as well as the Banque de France.
Reflection on the institutional anchoring of electronic money institutions helped to clarify the status of the
institutions concerned under the new banking law. At the outcome of the proceedings, a decision was
made to create a separate status for electronic payment and money issuance institutions, with a view to
ensuring consistency between banking law and payment system regulations.
80
IV - BANKING AND FINANCIAL SYSTEM
4.1 - REVIEW OF DEVELOPMENTS IN THE BANKING SYSTEM
4.1.1 - Trends in the banking network
In 2012, the WAEMU banking network was reduced by one unit compared to the previous year, in
relation to the following events:

in Benin, a ministerial order was issued withdrawing approval from the African Investment Bank (AIB),
as a bank;

in Côte d'Ivoire, the Banking Commission authorised the establishment of a branch of Coris Bank, in
the framework of the single approval procedure;

in Togo, a ministerial order was issued withdrawing approval from Cauris Investissement as a banklike financial institution.
The number of approved credit institutions therefore totalled one hundred and twenty (120) units, against
one hundred and twenty-one (121) the previous year.
Table 29: Country distribution of credit institutions (*)
31/12/2011
BENIN
BURKINA FASO
COTE D’IVOIRE
GUINEA-BISSAU
MALI
NIGER
SENEGAL
TOGO
WAMU
Banks
Bank-like
Financial
institutions
13
12
23
4
13
11
19
12
107
0
5
1
0
2
1
2
3
14
Windows
(**)
P1
175
201
515
20
343
92
330
169
1 845
P2
153
180
527
13
262
78
344
118
1 675
31/12/2012
Banks
Bank-like
Financial
institutions
12
12
24
4
13
11
19
12
107
0
5
1
0
2
1
2
2
13
Windows
(**)
P1
175
201
515
20
343
92
330
169
1 845
P2
153
180
527
13
262
78
344
118
1 675
Source: BCEAO.
N.B.: P1 = windows, branch offices and outlets; P2 = ACDs/ATMs.
* Based on orders of approval and withdrawals of approval.
** 2011 data.
4.1.2 - Activities of banks and financial institutions
Between 2011 and 2012, developments within the Union’s banking system were marked by 9.31%
growth in resources and 13.02% in uses.
In credit institutions, resources stood at 14,741.5 billion on 31 December 2012 against 13,486.6 billion
on 31 December 2011, showing an increase of 1,254.9 billion. This trend was essentially due to increases
of 1,015.4 billion in deposits and loans, 156.7 billion in net equity capital and 82.8 billion in other
resources.
Uses progressed by 1,625.4 billion over the year, reaching 14,102.5 billion at the end of December
2012, due to a 1,009.1 billion increase in customer credits and a 613.3 billion increase in other uses.
81
Short-term credits grew by 581.1 billion, and medium- and long-term credits progressed by 507.7 billion.
Overdue credits were up by 78.7 billion, while leasing and related transactions grew by 29.3 billion.
The increase in other uses was mainly due to investment securities and financial investments, which
respectively grew by 440.2 billion and 60.9 billion, reaching 2,700.9 billion and 587.6 billion.
The gross rate of deterioration in the quality of the portfolios of the Union’s banks and financial
institutions remained stable at 15.9% at the end of December 2012. However, the net rate, taking
account of provisions, rose by 0.2 percentage point to stand at 6.5%.
The cash flow surplus of banks and financial institutions dropped by 370.5 billion, to stand at 639.0
billion at the end of 2012, due to stronger growth in uses as compared to resources.
Table 30: Trends in uses and resources of WAMU-based banks and financial institutions
Amounts
WAMU
1. CREDITS
Long-term credits
Medium-term credits
Short-term credits
Including seasonal credits
Credit-lease and related items
Overdue credits (a)
including doubtful debts & contentious claims
Net deterioration rates (a/1) (as a %)
2. OTHER USES
Investment securities
Capital assets
Other financial assets
Miscellaneous uses
A. TOTAL USES (1+2)
1. NET EQUITY CAPITAL
2. DEPOSITS AND LOANS
Fixed-term
Liquid asset accounts
3. OTHER RESOURCES
B. TOTAL RESOURCES (1+2+3)
DEFICIT (-) OR SURPLUS (+) (B-A)
ALLOCATION OF CASH BALANCE
1. LIQUID ASSETS
2. BANKS AND CORRESPONDENTS
Uses
Including outside WAMU
Resources
Including outside WAMU
Change
Dec. 2011
Dec. 2012
in value
as a %
(1)
(2)
(3)=(2)-(1)
(4)=(3)/(1)
8 560.9
303.2
2 891.6
4 563.9
188.3
72.4
541.5
245.9
6.3
3 916.2
2 260.7
526.7
618.9
509.9
12 477.1
1 391.0
11 235.0
5 420.2
5 814.8
860.6
13 486.6
1 009.5
9 570.0
354.0
3 348.5
5 145.0
290.1
101.7
620 .2
279.4
6.5
4 532.5
2 700.9
587.6
649 .1
594.9
14 102.5
1 547.7
12 250.4
5 971.7
6 278.7
943.4
14 741.5
639.0
1 009.1
50.8
456.9
581.1
101.8
29.3
78.7
33.5
0.2
616.3
440.2
60.9
30.2
85.0
1 625.4
156.7
1 015.4
551.5
463.9
82.8
1 254.9
370.5
6.9
16.8
15.8
12.7
54.1
40.5
14.5
13.6
2.5
15.7
47.7
11.6
15.2
16 .7
12.7
11.3
14.1
10.2
8.0
9.6
9.3
36.7
421.6
587.8
2 617.9
547.9
2 032.5
341.7
466.5
172.8
2 813.4
711.2
2 640.6
328.1
44.9
-415.0
195.5
163.3
608.1
-13.6
10.6
-70.6
7.5
29.8
29.9
-4.0
Source: BCEAO.
82
4.1.3 - Status in relation to prudential rules
Based on the information available on 30 September 2012, the effective combined equity of the WAMU
banking system as a whole stood at 1,086.4 billion. Weighted risks stood at 9,769.3 billion. Thus, the
average capital-risk ratio stood at 11.12% for the banking system as a whole, up 0.16 percentage point
compared to the end of December 2011 against a minimum standard of 8.0%. Approximately 76% of all
credit institutions complied with the ratio. Only Côte d’Ivoire, with an average risk coverage ratio of
7.38%, performed below the regulatory standard.
Furthermore, as at 30 September 2012, 61.0% of banks and bank-like financial institutions were in
compliance with the ratio, compared to 59.0% at the end of December 2011.
Overall, in prudential terms, a high proportion of institutions were in compliance with most of the
principal standards pertaining to equity.
Concerning supervision, 16.0% of all credit institutions were placed under close supervision. Among
their number, three (3) were placed in trusteeship due to financial imbalances and insufficiencies
identified in their management and operations.
4.1.4 - Rating agreements system
The Rating Agreements Mechanism was established by the WAMU Council of Ministers in December
1990 and amended in September 2002. It constitutes an a posteriori control instrument on the quality of
the portfolios of banks and financial institutions. In this framework, banks and financial institutions are
required to submit rating agreement applications to the BCEAO, for at least the fifty (50) largest credit
risks in their portfolios.
Through decision no. CM/UMOA/022/12/2012 of the WAMU Council of Minister on the revision of the
standard ratio for coverage of medium- and long-term uses with stable resources and the abrogation of
the portfolio structure ratio, corresponding to a minimum ratio of 60.0% between credits under rating
agreements and the outstanding total of its gross credits. However, for its own purposes, the BCEAO
continued to monitor the performances of credit institutions in terms of their portfolio structure ratios.
In the course of the 2012 financial year, 982 rating agreement applications were reviewed by the Central
Bank, for a combined total of 1,636.3 billion, against 785 applications the year before, for a value of
1,007.3 billion.
After processing of the files, 850 applications meeting the standards set forth by the mechanism obtained
favourable quotations amounting to 1,078.4 billion, corresponding to 86.6% of the files reviewed and
65.9% of the amounts submitted.
As at the end of December 2012, outstanding rated credits stood at 773.6 billion against 459.2 billion a
year earlier.
83
Table 31: Rating agreements processed in 2012 (amount in millions of CFA francs)
Benin
356
155 264
313
72 894
43
82 371
Burkina Faso
109
307 542
44
92 807
65
214 734
Côte d'Ivoire
56
425 149
44
320 739
12
104 410
0
0
0
0
0
0
Mali
85
243 330
79
142 426
6
100 904
Niger
41
126 675
36
97 841
5
28 834
Guinea-Bissau
17
223 448
17
213 248
0
10 200
Togo
318
154 858
317
138 415
1
16 443
Total
982
1 636 265
850
1 078 370
132
557 895
Senegal
Source: BCEAO.
4.2 - REVIEW OF DEVELOPMENTS ON THE REGIONAL FINANCIAL MARKET
During the 2012 financial year, the WAEMU Regional Stock Exchange Market (BRVM) operated in an
economic context marked by subdued international economic growth, linked in particular to the
persistent fragility of the financial system in industrialised countries. Within the Union, the
macroeconomic situation improved significantly in 2012, thanks to the economic recovery in Côte
d’Ivoire, continuing structural reforms and reinforced actions to enhance member State attractiveness.
In this context, two benchmark indices, the BRVM10 and the BRVM composite, respectively rose by
25.55 points and 27.70 points compared to their levels in December 2011, ringing in at 184.04 points
and 166.58 points at the end of December 2012. Likewise, total financial market capitalisation
progressed by 25.5% in 2012, reaching 4,863.2 billion at the end of December 2012. The trend was
due to a 26.9% increase in capitalisation of the stock market, which stood at 4,031.4 billion at the end of
December 2012 and a 19.2% increase in capitalisation of the bond market, which stood at 831.8 billion.
The volume of transactions also rose. Boosted by ECOBANK share transactions, 37,312,686 securities
had been exchanged by the end of December 2012, against 17,988,860 securities in FY 2011.
33,715,196 ECOBANK shares were traded, representing 90.36% of the total volume of the market.
4.3 - REVIEW OF DEVELOPMENTS IN DECENTRALISED FINANCIAL SYSTEMS
4.3.1 - Activity indicators
According to the information available at the end of December 2012, there were seven hundred and
twenty-nine (729) microfinance institutions in WAMU. The number of beneficiaries of services provided
by decentralised financial systems (DFS/SFD) grew by 0.4% compared to December 2011, to stand at
11.7 million CFA francs at the end of December 2012.
As regards financial intermediation, growth was experienced in deposits and financing. Deposits
increased by 10.6%, reaching 681.8 billion CFA francs (or 6.4% of all bank deposits) against 616.7
billion CFA francs the year before. Loans outstanding rose by 9.6% to 646.8 billion CFA francs (or 7.3%
of all bank loans) against 589.9 billion CFA francs in December 2011.
The gross deterioration rate for DFS portfolios in the Union, measured by the ratio of past due credits to
outstanding credits, stood at 5.5% at the end of December 2012, against 5.4% at the end of December
2011. The ratio remains above the 3% standard. The proportion of DFS with a gross portfolio
deterioration rate above the standard remained high, at 86.9%.
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4.3.2 - Implementation of PRAFIDE
The activities carried out by the BCEAO in FY 2012 in the framework of implementation of the regional
support programme for decentralised finance (PRAFIDE) received financial support from the SIDACGAP-UNCDF donor consortium and from the Luxembourg Agency for Development Cooperation in
the framework of the “AFR/017-Promotion of the Inclusive Financial Sector for the UEMOA Zone”
project. The project focused on the following components:
- Development of the legal framework and prudential rules;
- Microfinance sector supervision;
- Improving financial information;
- Capacity-building for microfinance actors.
4.3.2.1 - Legal framework and prudential rules
Regarding the development of the legal framework and prudential rules, the law on DFS regulation
drafted in 2007 and its implementing decree were adopted in Benin, Burkina, Guinea-Bissau, Mali,
Niger and Senegal. The abovementioned implementing decree was in the process of being adopted in
Côte d’Ivoire and Togo.
4.3.2.2 - Microfinance sector supervision
The annual concertation meeting between the BCEAO, the office of the Secretary General of the
WAMU Banking Commission and the Ministries in charge of Finance in the WAMU member States was
organised on the premises of the BCEAO headquarters in Dakar, from 28 to 30 March 2012. The
purpose of the meeting was to take stock of decentralised finance sector monitoring in each of the
member States of the Union, and to review the DFS inspection programmes for the 2012 financial year.
During the meeting, the participants agreed to carry out thirty-three (33) joint inspection missions
involving the Finance Ministries and the Central Bank.
In compliance with the decision, the BCEAO and the Ministerial Monitoring Structure (SMS) of the DFS
carried out twenty-five (25) inspection tours before the end of December 2012 against thirty-eight (38)
in 2011.
However, the reinforcement of sector supervision by increasing the number of on-site inspection tours
continues to be one of the major challenges facing the supervisory authorities.
The Central Bank has prepared a guide on how to process applications for operating authorisations. In
addition, the BCEAO also reviewed ten (10) applications for approval and two (2) requests for
exemption from the nationality requirement.
4.3.2.3 - Improving financial information
In the framework of the improvement of information on the microfinance sector, the Central Bank
continued reflection on the setting up of a DFS central credit register. In this framework, it organised
study tours at the Central Banks of Rwanda and India. Reflection also continued on the implementation
of a centralised application for the monitoring of decentralised financial systems by the supervisory
authorities, throughout the Union.
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4.3.2.4 - Capacity-building for microfinance actors
Throughout FY 2012, the Central Bank continued its microfinance capacity-building activities by
organising national and regional seminars. These notably included:

a regional trainer training seminar on the legal framework applicable to DFS, held from 21 to 25
May 2012, in Dakar. The purpose of the meeting was to improve ownership of the contents of the
new legal framework applicable to decentralised financial systems by representatives of the
supervisory authorities and to serve as a basis for subsequent training in their home countries;

national training sessions on the legal framework applicable to DFS in Togo (from 08 to 12 October
2012), Benin (from 22 to 26 October 2012), Côte d’Ivoire (from 12 to 14 November 2012) and
Guinea-Bissau (from 19 to 23 November 2012), in order to reinforce the popularisation of the new
legal framework;

a training seminar for sector stakeholders on the guide on how to process applications for approval
of DFS institutions in WAEMU, held from 02 to 06 July 2012, in Abidjan;

a trainer training seminar for representatives of the supervisory authorities and professional
associations of DFS (Association Professionnelle des Systèmes Financiers Décentralisés –
APSFD) on the chart of accounts pertaining to decentralised financial systems in WAMU, held in
BCEAO Headquarters in Dakar from 12 to 23 November 2012.
In addition, the BCEAO took part in a training session on microfinance at the Boulder Institute in Turin,
Italy, from 16 July to 3 August 2012.
The Central Bank also participated in the facilitation of Masters’ courses on microfinance at the Centre
Africain d'Etudes Supérieures en Gestion (CESAG) during the 2011-2012 academic year.
4.3.3 – Sector review and outlook
Financial year 2013 will be marked by the implementation of the Plan of action for the preservation and
consolidation of microfinance sector viability in WAMU and the continuation of the activities planned in
the framework of Project “AFR/017-Promotion of Inclusive Financial Sectors for the UEMOA Zone”.
The principal activities should focus on consolidating the implementation of the new legal framework,
enhancing supervision and improving information on the sector.
In terms of consolidating the implementation of the new legal framework, the following actions are
envisaged:
–
continued popularisation and effective enforcement of the new instruments governing the
microfinance sector in WAMU;
–
enhanced supervision of the enforcement of the provisions of Instruction no. 17-12-2010 of 29
December 2010 on the organisation of internal controls in DFS;
–
awareness for DFS network umbrella organisations regarding their obligations in terms of
controlling affiliated community-based institutions;
–
measures aimed at ensuring that certification references are systematically written on DFS signs
and advertising posters;
86
–
monitoring of effective setting up of security funds in the network of Mutual or Cooperative Savings
and Credit Institutions (IMCEC);
–
enhanced supervision of DFS compliance with the new standards on capitalisation and financing of
investments and equity interests.
The actions planned with a view to enhancing supervision will focus on:
–
establishing risk-based supervision;
–
setting up, in the ministerial monitoring structures, a mechanism to monitor the implementation of
the measures recommended following internal and external controls of decentralised financial
systems, and defining a minimum frequency for onsite controls;
–
capacity-building for supervisory authority staff, notably on how to process applications for approval
and the chart of accounts pertaining to decentralised financial systems;
–
revising the inspectors’ guide in light of the provisions of the new legal framework governing the
sector and recent trends observed in the field of microfinance.
In terms of improving information on the sector, the measures to be implemented involve:
–
accelerating the setting up of a central credit register for decentralised financial systems in the Union;
–
designing a centralised computer solution for DFS monitoring by ministerial monitoring structures,
the BCEAO and the office of the Secretary General of the Banking Commission, thereby forming a
real voucher monitoring mechanism equipped with an early warning mechanism;
–
continued work on compliance of DFS management information systems with the guidelines set
forth by the chart of accounts pertaining to decentralised financial systems.
4.4 - ENHANCEMENT OF FINANCIAL STABILITY
During the 2012 financial year, the following projects were implemented with a view to enhancing
financial stability in WAMU:

organisation of the regular meetings of the WAMU Financial Stability Committee (CSF UMOA);

monitoring of risks within the banking system;

setting up of deposit guarantee funds in WAMU financial institutions;

reworking of the prudential mechanism applicable to credit institutions in WAMU;

authorisation of bank-like financial institutions to receive public deposits of funds;

updating of the legislation on disputes regarding violations of the regulations governing external
financial relations;

establishment of a specific legal framework for the treatment of dormant accounts in WAEMU;

improvement of the payment systems regulatory framework and management mechanism;

review of laws on the fight against money laundering and financing of terrorism;
87

updating of the regulatory framework pertaining to repo transactions;

establishment of Primary Dealers (PDs);

finalisation of instruments pertaining to monetary policy.
4.4.1 - Meetings of the WAMU Financial Stability Committee
The WAMU Financial Stability Committee (CSF-UMOA), held its two regular meetings in Dakar, under
the chairmanship of the Governor of the BCEAO, respectively on 14 June and 17 December 2012.
The Committee approved the guidelines on the mapping of risks pertaining to different components of
the financial system, with a view to establishing a map of the financial sector as a whole. CSF-UMOA
also examined the means for setting in place suitable supervisory mechanisms to monitor and control
the different categories of guarantee organisations operating in the Union. Reflection is ongoing within
the BCEAO with a view to the effective implementation of the recommendations issued.
The Committee also approved the proposals formulated by the CSF-UMOA Expert Group with a view to
the implementation of a regulatory and supervisory framework for financial groups operating in the
Union. It examined the main provisions of the draft charter on cooperation in the supervision of financial
groups. The document is in the process of being finalised by the competent legal services of each CSFUMOA member institution and organ.
Furthermore, the Committee undertook reflection on the selection of the macroprudential indicators to
be used as a basis for the early warning mechanism to be set up in the Union. Methods for establishing
thresholds have also been reviewed by the Committee, which issued instructions with a view to the
finalisation of the report.
4.4.2 - Monitoring of risks within the banking system
In the framework of analysis of the resilience of the regional banking sector, during the 2012 financial
year, the BCEAO continued with the development of financial soundness indicators for all eight
countries in WAMU and throughout the Zone. The trend in these indicators reflects relative soundness
in the regional banking system, which, however, remains vulnerable to credit risks, notably due to the
concentration of financing in a few large businesses.
Furthermore, with a view to equipping the Union with suitable tools to prevent crises, especially in the
banking sector, the Central Bank undertook work to set in place a mechanism to conduct stress and
early warning tests for banking crises in WAMU.
4.4.3 - Setting up of a Deposit Guarantee Fund for financial institutions in WAMU
The respective laws on regulation of banks and decentralised financial systems (DFS) make provisions
for the membership of the Union’s credit and microfinance institutions in a Deposit Guarantee Fund
(DGF). The purpose of the Fund is to help strengthen depositor confidence, which is an essential
condition for increasing mobilisation of resources by institutions underpinning the stability of the
financial system.
Pursuant to the abovementioned provisions, the Central Bank formulated proposed guidelines with a
view to setting up the Fund. The guidelines have already been the focus of national concertation
meetings in the different member States. At the outcome of the process, they were submitted to the
WAMU Council of Ministers, which authorised the creation of the Fund during its session of 28
September 2012. Simulations on the size of the Fund and the ceiling of compensation for depositors
are being finalised, as well as regulatory instruments to govern the Fund.
88
4.4.4 - Reworking of the prudential mechanism applicable to credit institutions in WAMU
In terms of prudential regulation, two (2) standards applicable to credit institutions were revised during
the final quarter of financial year 2012. This revision notably took account of the process of increasing
the minimum registered capital for credit institutions, in keeping with the decision of the WAMU Council
of Ministers in 2007. It is also linked to the process of alignment of prudential regulations with
international practices.
Through Decision no. CM/UMOA/022/12/2012 of 14 December 2012, the Council of Ministers of the
Union reduced the standard ratio for coverage of medium- and long-term uses with stable resources
from 75.0% to 50.0% and eliminated the portfolio structure ratio.
4.4.5 - Authorisation of bank-like financial institutions to receive deposits
of funds from the public
With the entry into force of the institutional reform of WAMU and the BCEAO, which took effect on 1st
April 2010, and the new law on banking regulation, certain provisions of the framework decree
implementing the previous banking law have been addressed by BCEAO instruction no.
11/12/2010/RB, specifying the classification, legal form and transactions of bank-like financial
institutions.
Based on this revision, the Council of Ministers of the Union adopted Decision no. CM/
UMOA/021/12/2012 of 14 December 2012 on the draft Uniform decree on the authorisation of bank-like
financial institutions to receive public deposits of funds.
The Uniform decree is a complement to the abovementioned BCEAO Instruction on the authorisation
of financial institutions to receive funds from the public. For the most part, it incorporates the
provisions of the former framework decree on the nature and characteristics of deposits that could be
received by financial institutions but also extends the list of eligible deposits and includes deposits
received in the framework of deferred credit transactions and deposits made in the context of loan
settlement.
4.4.6 - Updating of the law on disputes involving violations of the regulation
on external financial relations
Following the adoption by the Council of Ministers of the Union, on 1 October 2010, the new
Regulation on external financial relations of WAEMU member States, the BCEAO drafted a revision
of the law on disputes involving violations of the foreign exchange regulation in force, to align it with
said regulation. In this framework, the concerns expressed by the stakeholders were taken into
account, as regards the interpretation and implementation of certain provisions of the instrument in
force.
The proceedings culminated in the preparation of a new draft uniform law that was the focus of broad
stakeholder concertation and two draft implementing decrees. These instruments, adopted through
Decision no. CM/UMOA/020/12/2012 of the Council of Ministers of the Union, dated 14 December
2012, were forwarded to the member States for inclusion in their domestic legislation.
4.4.7 - Establishment of a specific legal framework for the treatment of dormant
accounts in WAEMU
In the framework of regulatory actions carried out to ensure better protection of the interests of users of
financial services and to strengthen their confidence in banking and financial institutions, the BCEAO
made preparations to set in place a specific legal framework for the treatment of accounts that have
been inactive for an extended period of time and whose depository institutions are unable to find the
holders or their assigns, commonly known as dormant accounts.
89
This regulation also aimed to protect banks and other institutions concerned (DFS, postal financial
services and national savings banks) against the risk of disputes relating to the treatment of assets in
their accounts that are unclaimed by customers, as well as mismanagement and fraud.
With this in mind, the Council of Ministers of the Union, through Decision no. CM/UMOA/005/05/2012,
dated 10 May 2012, approved the orientations submitted to it by the BCEAO with a view to
establishing a specific legal framework for the treatment of dormant accounts in the books of financial
institutions in the WAMU member States. Based on these orientations, the Central Bank drafted a
uniform bill on dormant accounts which was adopted by the Council of Ministers in its session of 28
September 2012 through Decision no. CM/UMOA/016/09/2012. The inclusion of this law in the
domestic legislation of the member States of the Union should take place by 31 December 2013 at
the latest, in keeping with Decision no. CM/UMOA/023/12/2012 of the Council of Ministers of the
Union, dated 14 December 2012.
4.4.8 - Improvement of the payment systems regulatory framework and management mechanism
Following the changes that took place due to the entry into production of the new payment systems, the
institutional reform of WAMU and the BCEAO, as well as the appearance of new payment instruments
and methods, an evaluation of the regulations pertaining to payment systems and methods was
undertaken to identify the amendments that would be desirable and additional regulations that could
reinforce their scope.
In this framework, the Central Bank carried out a complete inventory of the difficulties encountered in
the implementation of the regulations, particularly by credit institutions and State departments. Based
on the findings, new regulations are being developed and will be submitted to the Council of Ministers
for adoption in 2013.
Furthermore, in the framework of reinforcing payment system security in the Union, the BCEAO has
begun work, in conjunction with participants––notably the banks and public treasury departments––to
set up a guarantee fund for the settlement of clearing balances in the WAEMU Automated Interbank
Clearing System (SICA-UEMOA). This initiative is aimed at aligning SICA-UEMOA with the international
standards in force regarding clearing systems.
A draft Convention on the creation and management of a SICA-UEMOA fund guaranteeing the
settlement of clearance balances and establishing the regulations governing its operation has been
developed in keeping with the guidelines approved by the office of the Governor of the BCEAO, during
a meeting held on 29 August 2012. National concertation meetings on the draft Convention are planned
with clearing system participants.
4.4.9 - Review of the laws on the fight against money laundering and financing of terrorism
With the changes taking place internally and externally, the BCEAO undertook a review of the
instruments pertaining to the fight against money laundering and the financing of terrorism in the
member States of the Union. The process was supported in particular by the lessons learned from the
implementation of the instruments. Furthermore, it was to allow the abovementioned instruments to be
aligned with the new international norms on the subject, published by the Financial Action Task Force
(FATF / GAFI) in February 2012.
In this regard, a complete inventory was taken of the potential difficulties encountered by the parties
involved in the implementation of the instruments in force. Based on the findings of that inventory, the
BCEAO undertook a process of developing new draft legal instruments on money laundering and
financing of terrorism to be submitted to the Council of Ministers of the Union, for adoption, in FY
2013.
90
The concerns and proposals of the actors involved regarding the revision of the legal instruments on
the fight against money laundering and financing of terrorism in WAEMU member States have been
gathered. An analysis of the contributions received as well as the new norms established by the
Financial Action Task Force (FATF / GAFI) on the subject is underway and should make it possible to
prepare guidelines and draft legal instruments during the course of FY 2013.
4.4.10 - Updating of the regulatory framework pertaining to repo transactions
In the framework of updating of the regulations on repo transactions, a draft set of community
regulations and a draft framework convention on repo transactions were developed based on guidelines
approved by the office of the Governor of the Bank during its meeting of 12 September 2012.
The draft regulations finalised at the outcome of concertation meetings with the actors involved will be
submitted to the Council of Ministers of the Union, for adoption, during FY 2013.
4.4.11 - Establishment of Primary Dealers (PDs)
In the framework of the revitalisation of the market for public debt securities in WAMU, the BCEAO has
prepared draft instruments on Primary Dealers in government securities. These instruments, comprising
a Charter governing relations between public treasury departments, PDs and the WAMU securities
agency on the market for member State public debt securities, and a BCEAO Instruction on the general
rules and regulations applicable to PDs and a Code of Good Practice, were finalised on the basis of the
observations of the Directors General of the public treasury departments of the WAMU member States.
The draft instruments will be the focus of concertation meetings with the credit institutions and
brokerage firms of the Union in 2013. The draft regulations finalised at the outcome of concertation
meetings with the actors involved will be submitted to the Council of Ministers of the Union, for
adoption, during FY 2013.
4.4.12 - Updating of instruments pertaining to monetary policy
In order to take account, in the regulatory instruments governing the public securities market, of the
establishment of the WAMU securities agency and the creation of a Financial Stability Fund, the Central
Bank conducted a revision of the regulations on government treasury bills and bonds. The draft
instrument notably specifies the role of the WAMU securities agency in the organisation of issues of
government treasury bills and bonds and enhances the security of the market by inserting provisions on
the prevention of defaulting on payments. The amended regulations will be submitted to the Council of
Ministers during FY 2013.
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V - OTHER ACTIVITIES OF THE BCEAO
5.1 - MANAGEMENT OF FOREIGN EXCHANGE RESERVES
Management of foreign exchange reserves was characterised by the continuation of the policy of
diversification of investment supports to foreign exchange assets not deposited in the Operating
Account, in strict compliance with the prudential principles and practices generally allowed for the
management of official exchange reserves, and particularly IMF Guidelines on the subject.
In FY 2012, BCEAO exchange reserves were managed in an international economic environment
marked by a slowdown in global economic growth, linked notably to the impact of the sovereign debt
crisis in Europe and low levels of international trade.
In this context, the European Central Bank (ECB) and the American Federal Reserve (the FED)
increased their support for the economy by making their monetary policy more accommodating.
Thus, following an observation period, given the success of very long-term tenders from December
2011 to February 2012, the ECB decided to lower its principal leading rates by 25 basis points in July
2012, so that the main refinancing rate stood at 0.75%, the lowest rate in its history. The ECB also
decided to set up an Outright Monetary Operations programme to sell government debts at short
maturities (1 to 3 years) for an unlimited period of time and for unlimited amounts
For its part, throughout the 2012 financial year, the American Federal Reserve kept the federal funds
target rate within the range of 0% to 0.25% in force since 16 December 2008. It also announced its
intention of maintaining it within that range until mid-2015, specifying that trigger levels would be set for
changing the main leading rate, to wit, an unemployment rate below 6.5% and an inflation rate above
2.5%. Furthermore, the FED extended “Operation Twist”, which was initially scheduled to end in June
2012, to the end of the year. This operation, aimed at easing long-term rates, consisted of replacing
public securities held by the FED with a maturity of 3 years or less with securities having maturities of
between 6 and 30 years. Finally, the FED also launched new real-estate backed debt security
purchasing programmes (MBS) and programmes to purchase long-term US treasury bonds.
In this economic and financial environment, the foreign exchange assets held by the BCEAO in its
Operating Account were kept slightly above the conventional rate of centralisation of foreign cash assets
of the Union in that account. On 31 December 2012, BCEAO foreign exchange reserves deposited in its
Operating Account represented 54.61% of overall reserves against 52.69% at the end of 2011.
Foreign exchange assets separated from the Operating Account were held in the form of bonds or
debentures and monetary investments, divided between an investment portfolio, shares in a common
fund trust managed by an international institution, a liquidity fund and a risk hedging fund on
transactions with the IMF, denominated in Special Drawing Rights (SDRs).
All in all, the exchange reserve management policy implemented by the BCEAO in FY 2012 was governed by
the imperatives of security, liquidity and profitability.
5.2 - ECONOMIC INTREGRATION OF WAEMU MEMBER STATES
In the framework of work towards the economic integration process in the Union, the Central Bank took
part in the proceedings of the Regional Economic Programme (REP / PER) Steering Committee. The
activities carried out by the Committee essentially involved the implementation of the second phase of
the REP programme (REP 2), covering the 2012-2016 period.
92
REP II constitutes an essential instrument for the economic development of WAEMU, and its ambition
is to meet certain major challenges faced by the Union, notably access to energy, food security, water
control, development of underprivileged areas and setting up of an integrated, efficient production
system. It includes approximately one hundred projects for a total cost of 5,763 billion CFA francs, 87%
of which was devoted to economic infrastructure development. A donor round table was organised on 2
and 3 July 2012 in Abidjan, to seek financing for REP II. Intentions of financial contributions were
expressed by partners in development, for a total of 2,035 billion CFA francs, or 46% of the amount that
needs to be found to cover total financing of REP II.
In the context of the Union’s common sectorial policies, the BCEAO took part in activities relating to the
implementation of the Regional Initiative for Sustainable Energy (IRED), and specifically in the work of
the IRED Steering Committee and Technical Monitoring Committee and that of the Council of Donors of
the Energy Development Fund (EDF). The work accomplished chiefly included monitoring execution of
projects financed with EDF resources and approval of new financing for priority electricity projects in the
member States of the Union. It also included the conduct of a feasibility study for an Investment Fund
for the financing of energy infrastructure in WAEMU countries. In addition, a regional committee for
electrical power producers, transporters and distributors (Comité Régional des Producteurs,
Transporteurs et Distributeurs d’Energie Electrique – CRPTDE) was set up for the WAEMU member
States, with a view to increasing borrowing capacity for IRED financing.
In the framework of the implementation of the multilateral surveillance mechanism on the
macroeconomic policies and performances of the member States of the Union, the Central Bank
participated in the proceedings of the joint Secretariat (WAEMU Commission, BCEAO and WADB) and
the Statutory Committee of Experts. The proceedings focused essentially on the preparation of
semester reports on the execution of multilateral surveillance. They included an evaluation of the
States’ 2013-2017 pluri-annual programmes of convergence.
The Central Bank also participated in the proceedings of the joint Secretariat (WAEMU Commission,
BCEAO, WADB and CREPMF) focusing on the preparation of the documents submitted at the 16th
ordinary session of the Conference of Heads of State and Government of the Union, which took place
on 6 June 2012 in Lomé. In that context, it notably drafted a contribution to the report on the state of the
Union in 2012, which was the main working document for the Conference.
5.3 - MONETARY AND FINANCIAL COOPERATION
5.3.1 - Relations with the Bretton Woods Institutions
In FY 2012, transactions carried out by the Central Bank and the International Monetary Fund (IMF) on
behalf of WAMU member States culminated in net inflows of resources amounting to 197.6 million
SDRs, against 219.1 million SDRs one year prior. The decrease in net inflows reflected the difficulties
encountered by certain countries in the execution of their programmes with the IMF, to wit Mali and
Togo, and the suspension of financial relations between Guinea-Bissau and the Fund.
The drawings carried out in 2012 under the Extended Credit Facility (ECF) 1 amounted to 217.6 million
SDRs, representing 169.4 billion CFA francs against 239.3 million SDRs or 178.8 billion CFA francs the
previous year.
Reimbursements of loans granted by the IMF stood at 14.8 million SDRs, or 11.6 billion CFA francs.
1 The Extended Credit Facility (ECF) is the main medium-term concessional financing tool used by the IMF to assist low-income
countries with protracted balance of payments problems.
93
Costs covered by the BCEAO in 2012 in the framework of its transactions with the IMF amounted to 1.0
million SDRs, the equivalent of 610.1 million CFA francs in 2012, against 3.5 million SDRs (2.6 billion
CFA francs) the previous year. They applied solely to commissions paid under the general resource use
facility. No interest fees were paid over the period, due to the application of measures implemented by
the IMF in July 2009 in reaction to the global financial crisis, regarding exceptional relief on interest on
loans granted by the International Monetary Fund to low-income countries 2.
In remuneration of their creditor positions in 2012, the IMF paid 0.9 million SDRs or 530.7 million CFA
francs to WAMU member States, against 3.1 million SDRs, the equivalent of 2.3 billion CFA francs, the
previous year.
In their transactions with the IMF, the member States acquired 14.8 million SDRs in FY 2012 or 11.6
billion CFA francs.
5.3.2 - Relations with other institutions
In the framework of monetary cooperation in Africa, the BCEAO participated in the annual meetings of
the Association of African Central Banks (AACB) for FY 2012, held on 29 and 30 August 2012 in
Algiers. The highlights of the meetings included the Symposium of the Association, held on 29 August
2012, and the 36th Annual Meeting of the Assembly of Governors of the Association, which took place
on 30 August 2012. The meeting of the Governors focused on: (i) a review of the progress report on the
activities of the Joint AACB-AUC Committee, (ii) an evaluation of the implementation of the African
Monetary Cooperation Programme (AMCP), (iii) the creation of a Community of African Banking
Supervisors (CABS), (iv) amendments to the Statutes of the AACB, (v) the organisation of meetings
and the preparation of the budget of the Association for FY 2013 as well as (vi) the election of its new
Executive. As for the Symposium, it provided an opportunity for exchanges on the subject of:
"Challenges for African Central Banks in the face of volatility of capital flows and rates of raw materials."
At the outcome of the proceedings, the Assembly of Governors urged African countries to step up
efforts to implement the AMCP, in light of the mediocre performances observed thus far.
In the area of monetary integration within the Economic Community of West African States
(ECOWAS / CEDEAO), the BCEAO attended the statutory meetings of the West African Monetary
Agency (WAMA / AMAO) and the West African Monetary Zone (WAMZ / ZMAO), held in January and
July 2012, respectively in Freetown, Sierra Leone, and Monrovia, Liberia. These meetings were marked
by meetings of the Committees of Governors of the central banks of the WAMZ and ECOWAS member
countries and the Council on Convergence in the Zone. The principal agenda items focused on: (i)
macroeconomic convergence in FY 2011, (ii) the status of implementation of the activities assigned to
the Agency in the framework of the roadmap for the creation of a single currency for ECOWAS, (iii) the
harmonisation of accounting and statistics practices in the banks and other financial institutions of
ECOWAS and (iv) the report on monetary policy frameworks in the Community. In light of the delays
observed in this regard, the Governors urged all stakeholders to speed the completion of the activities
under their responsibility, or run the risk of having to once again defer the deadline for the
concretisation of these projects.
2
The application period of the decision to provide exceptional relief on all interest payments on concessional loans granted by the
IMF to low-income countries was extended by one year at the end of December 2012.
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On the continental scale, the BCEAO participated in the fifth annual joint meeting of the AU Conference
of Ministers of Economy and Finance and the UN Economic Commission for Africa Conference of
African Ministers of Finance, Planning and Economic Development (CAMEF/CMCEA), held on 26 and
27 March 2012 in Addis Ababa, Ethiopia. The central theme of this session was: "Unleashing Africa's
Potential as a Pole of Global Growth". It was preceded, on 22-25 March 2012, by preparatory
proceedings for the Committee of Experts, including a high-level panel and parallel sessions focusing
on the various sub-themes.
The Central Bank also took part in the 47th annual meeting of the African Development Bank (ADB)
and the 38th annual meeting of the African Development Fund (ADF), held on 31 May and 1 June 2012,
in Arusha, Tanzania. The Bank further participated in a regional workshop in which experiences were
exchanged regarding best practices in terms of policy convergence and the creation of single
currencies, held in Addis Ababa, on 26 and 27 July 2012. This workshop, organised by the United
Nations Economic Commission for Africa (ECA), served as a framework for furthering reflection on
African integration, in conjunction with efforts aimed at accelerating the achievement of monetary union
and financial integration.
In the framework of the reinforcement of their cooperative relationships, the BCEAO and the Bank of
Central African States (BEAC) held their annual meeting on 17 and 18 September 2012 in N’Djamena,
Chad. The concertation proceedings focused on reviewing cooperation activities in 2012 and
establishing new directions for collaboration in FY 2012. The Governors of the institutions also
discussed trends in the international economic and financial environment and the macroeconomic
outlook in their respective zones. In the framework of an evaluation of monetary cooperation in 2012,
both institutions provided updates on activities linked to the tightening of internal audits and foreign
exchange reserves management. Discussion of the cooperation programme for 2013 focused on
cooperation on capacity building, management of notes and coins, strengthening of financial integration
and integration of the monetary policy framework and the financial sector supervision mechanism in
both zones. Following the proceedings, a working group was set up for further reflection on the projects
of resuming purchases of exported banknotes by the two Central Banks and the interconnection of the
payment systems of WAEMU and the Central African Economic and Monetary Community (CEMAC).
In the context of its participation in the spring meetings and annual assemblies of the International
Monetary Fund and the World Bank, held in April and in October 2012, the BCEAO notably participated in
meetings of the International Monetary and Financial Committee (IMFC) and the Development Committee
(DC) of these institutions. These meetings notably afforded Ministers of Finance or Economic
Development and Central Bank Governors with an opportunity to issue opinions and recommendations on
matters of economic growth and development in the countries as well as the running of the institutions.
The BCEAO also attended other meetings on the sidelines of the IMF and World Bank meetings. These
notably included the meeting of the Committee of Ten African Ministers of Finance and Central Bank
Governors, the meeting of the Governors of the francophone Africa group at the IMF and at the World
Bank as well as a high-level seminar organised by the IMF on the theme of “Reinforcing stability and
growth in WAEMU in an uncertain environment”.
On 24 September 2012, the BCEAO hosted a meeting of the technical sub-committee in charge of
conducting more detailed reflection on the organisation, operation and representation of the group of
francophone African countries at the International Monetary Fund and the World Bank, known as “Africa
II”. The aim of the meeting was to draft proposals on the method used to appoint members representing
the group to the Boards of Directors of the IMF and the World Bank, as well as the institutional
architecture and operation of the group, with a view to ensuring stronger representation of the member
countries in the Bretton Woods institutions and the representation of the countries in the advisory organs
of the IMF and the World Bank, based on transparent rules. The conclusions of the meeting were
submitted to the chairperson of the group.
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In the area of partnership with other monetary authorities, the BCEAO signed cooperation agreements
with the Islamic Development Bank (IDB) and the Banque de France, respectively in September and
October 2012. These agreements were aimed at developing relations between the BCEAO and the
institutions, notably in terms of capacity building, exchanges of experiences and information on
monetary and financial matters.
The BCEAO took part in a variety of meetings in financial year 2012 pursuant to its cooperation with the
Bank of Portugal and Central Banks of Portuguese-speaking African countries (PALOP). These
meetings notably focused on exchanging views on matters of common interest as well as capacity
building and sharing of experiences in various areas including payment systems development,
information and communication technology and accounting audits.
During financial year 2013, in addition to the implementation of the activities planned under the
cooperation agreements concluded, steps will be taken to revitalise those that are still in force but which
have not been the focus of specific action, and to officialise partnership relationships with other
institutions such as Bank Al-Maghrib.
5.4 - OTHER ACTIVITIES AND PROJECTS OF THE BCEAO
5.4.1 - Collection, management and dissemination of statistical information
The collection and management of statistical information, including on the WAEMU member States,
is a response to the Central Bank’s need for continuous access to the necessary information to
prepare studies, conduct economic, monetary and financial research, as well as for the official
publications of the Bank. A statistical database was created and set in place for that purpose by the
BCEAO in 1998.
This database has recently been renamed EDEN (Entrepôt de Données Economiques et fiNancières
de la BCEAO – the BCEAO’s economic and financial data repository) following work carried out in
2011 to make it available on the BCEAO website. It covers the economic, monetary and financial
situation of the States of the Union.
The EDEN Central Bank data repository contains some 13,000 statistical series pertaining to the real,
monetary, external and social sectors, as well as the public finance sector. The data is available on a
yearly, monthly, weekly or daily basis and covers the period stretching from 1960 to 2011. It can be
consulted through predefined tables or by selecting a list of variables. Users can freely choose their
consultation criteria (country, period, etc.). When the database is consulted, the tables generated can
be read directly on the consultation interface or exported.
The BCEAO database will be progressively expanded to include social statistics, notably data on the
population, education, basic social services, health, nutrition and housing.
5.4.2 - Balance sheet centre
During the 2012 financial year, the activities of the Central Bank involving the centralisation of nonfinancial business information essentially focused on managing the accounting, legal and financial
database and making it available to the corporate information marketing company ( Société de
Commercialisation des Informations d'Entreprise - SCIE-SA) in the framework of its mission.
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In the context of the management of the accounting, legal and financial database, a new “balance
sheet centre” application, which is now centralised at BCEAO Headquarters, was put into production on
13 February 2012. The Single Directory of Companies (RUE) recorded 14,218 new companies across
all States in the Union, with the exception of Guinea-Bissau, thus bringing the size of the RUE to 63,332
businesses as at 31 December 2012.
This result followed from the collection drive for bundles of financial statements in 2012. The Main
Branches collected 49,961 complete bundles, including 37,186 bundles applying to the 2011 financial
year and 12,775 bundles applying to previous years. In 2011, 24,196 bundles were collected, including
22,545 applying to FY 2010 and 1,651 applying to previous years.
With a view to ensuring the availability of database information for the corporate information
marketing company (SCIE-SA), under the implementation of the public service concession
agreement, the data on 3,964 financial statements from financial years running from 2007 to 2011 in all
WAEMU countries, with the exception of Guinea-Bissau, were transferred to SCIE-SA by the Central
Bank in November 2012.
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VI - BCEAO’S INSTITUTIONAL AND ADMINISTRATIVE FRAMEWORK
6.1 - ACTIVITIES AND OPERATION OF STATUTORY BODIES
During the 2012 financial year, the Organs of the Union held their meetings in conformity with the
provisions of the Treaty of 20 January 2007 establishing the West African Monetary Union (WAMU) and
the Statutes of the Central Bank of West African States.
6.1.1 - Conference of Heads of State and Government of the Union
The Conference of Heads of State and Government of the Union held its 16th ordinary session for FY
2012 on 06 June 2012, in Lomé, Republic of Togo, under the chairmanship of his Excellency Faure
Essozimna Gnassingbé, President of the Togolese Republic.
The meeting was attended by:
–
for the Republic of Benin, His Excellency Doctor Boni Yayi, President of the Republic;
–
for Burkina Faso, His Excellency Blaise Compaoré, President of the Faso;
–
for the Republic of Côte d’Ivoire, His Excellency Doctor Alassane Ouattara, President of the
Republic;
–
for the Republic of Guinea-Bissau, Mr Abubacar Demba Dahaba, Minister of Finance, Representing
His Excellency Manuel Serifo Nhamajo, Interim President of the Republic;
–
for the Republic of Mali, His Excellency Doctor Cheikh Modibo Diarra, Prime Minister;
–
for the Republic of Niger, His Excellency Issoufou Mahamadou, President of the Republic;
–
for the Republic of Senegal, His Excellency Macky Sall, President of the Republic;
–
for the Togolese Republic, His Excellency Faure Essozimna Gnassingbé, President of the Republic.
The participants in the proceedings included the members of the WAEMU Council of Ministers chaired by
Mr Tièna Coulibaly, Minister of the Economy, Finance and the Budget of the Republic of Mali, as well as:
–
Mr Cheikh Hadjibou Soumaré, President of the West African Economic and Monetary Union
(WAEMU) Commission;
–
Mr Tiémoko Meyliet Koné, Governor of the Central Bank of West African States (BCEAO);
–
Mr Christian Adovelande, President of the West African Development Bank (WADB);
–
Mr Léné Sebgo, Regional Council for Public Savings and Financial Markets (CREPMF).
Examining the economic and financial situation of the Union, the Heads of State and Government noted
the resilience of the economy in the Union, despite a difficult external and internal context. They
observed that the macroeconomic outlook appeared favourable.
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The Conference took an interest in the guidelines issued by the High-Level Committee on new
strategies to mobilise financial resources for development, under the leadership of His Excellency
Doctor Alassane Ouattara, President of the Republic of Côte d’Ivoire. It urged the Organs and
Institutions of the Union to begin implementing the actions identified to raise funds for development
under the authority of President Alassane Ouattara.
The Conference also noted the new progress achieved in the implementation of the Regional Initiative
for Sustainable Energy (IRED), under the supervision of His Excellency Doctor Boni Yayi, President of
the Republic of Benin.
In this framework, the Heads of State and Government reviewed the funding set in place by the Energy
Development Fund (FDE).
The Conference urged the community Organs and Institutions to continue efforts to effectively mobilise
resources for IRED and instructed them to focus on financing regional projects that promote integration.
It also decided to establish a new form of governance focusing on public-private partnerships and
organisational structuring reforms to improve the financing of the economy.
The Conference was informed of the conclusions of the audit on the prejudice experienced by the
Central Bank of West African States during the post-electoral crisis in Côte d’Ivoire.
The Heads of State and Government also adopted an Additional Act instituting an obligation of
discretion on the part of the Heads and Members of WAEMU Organs and Institutions, with regard to
political activities in member States.
6.1.2 - WAMU Council of Ministers
Chaired by Mr Tièna Coulibaly, Minister of the Economy, Finance and the Budget of the Republic of
Mali, its statutory chairman, the Council of Ministers of the West African Monetary Union (WAMU)
underwent the following changes during the 2012 financial year:

As regards the Republic of Benin, on 9 April 2012, Mr Jonas Gbian, Minister of the Economy and
Finance, was appointed to the Council, replacing Mme Alayi Adidjatou Mathys.

As regards the Republic of Côte d'Ivoire, Mme Nialé Kaba, Minister delegate to the Prime
Minister in Charge of Economy and Finance, was appointed to the Council, replacing Mr Charles
Koffi Diby. Mr Ally Coulibaly, Minister of African Integration, was appointed to the Council, replacing
Mr Adama Bictogo.

As regards the Republic of Guinea-Bissau, on 31 May 2012, Mr Abubacar Demba Dahaba,
Minister of Finance, was appointed to the Council, replacing Mr José Mário Vaz. On 31 May 2012,
Mr Abubacar Baldé, Minister of Commerce, Industry and Promotion of Local Products, was
appointed to the Council, replacing Ms Helena Nosolini Embalo.

As regards the Republic of Mali, on 24 April 2012, Mr Tièna Coulibaly, Minister of the Economy,
Finance and the Budget, was appointed to the Council, replacing Mr Lassine Bouaré. On 27 April
2012, Mr Marimpa Samoura, Deputy Minister to the Minister of the Economy and Finance in charge
of the Budget, was appointed to the Council, replacing Mr Sambou Wagué.
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
As regards the Republic of Niger, on 2 April 2012, Mr Gilles Baillet, Minister of Finance, was
appointed to the Council, replacing Mr Ouhoumoudou Mahamadou.

As regards the Republic of Senegal, on 5 April 2012, Mr Amadou Kane, Minister of the Economy
and Finance, was appointed to the Council, replacing Mr Abdoulaye Diop. On 06 April 2012, Mr
Abdoulaye Daouda Diallo, Deputy Minister to the Minister of the Economy and Finance in charge of
the Budget, was appointed to the Council, replacing Mr Abdoulaye Diop.

As regards the Republic of Togo, on 5 September 2012, Mr Mawussi Djossou Semodji, Minister
delegate to the President of the Republic in charge of Planning, Development and Land, was
appointed to the Council, replacing Mme Dédé Ahoéfa Ekoué.
During the 2012 financial year, the Council of Ministers held four (04) ordinary sessions,
respectively on 10 May 2012 at the BCEAO Main Branch Office in Lomé, on 29 June 2012 at BCEAO
Headquarters in Dakar, on 28 September 2012 at the BCEAO Main Branch Office in Cotonou, under
the chairmanship of Mr Tièna Coulibaly, Minister of the Economy, Finance and the Budget of the
Republic of Mali, its statutory chairman, and on 14 December 2012 at the BCEAO Main Branch Office
in Niamey, under the chairmanship of Mr Adji Otèth Ayassor, Minister of the Economy and Finance of
the Togolese Republic, acting as interim President. The Committee also met in an extraordinary session
preparatory to the Conference of Heads of State and Government of the Union, on 09 May 2012 at the
BCEAO Main Branch Office in Lomé. Two (02) additional extraordinary sessions also took place
respectively on 20 February 2012 at the BCEAO Main Branch Office in Ouagadougou and on 31 March
2012 at the BCEAO Main Branch Office in Abidjan.
During its extraordinary session of 20 February 2012, the Council of Ministers, after reviewing the
final report of the first meeting of the High-Level Committee on food security in the WAEMU space,
established by the Conference of Heads of State and Government, noted the negative repercussions of
the rainfall deficits on agricultural production in the Union. It was concerned with the poor performance
of the 2011/2012 crop year in the countries of the Union, particularly the cereal deficit recorded in six
(06) countries.
The Ministers decided to set up a task force to coordinate measures to boost agricultural production in
the Union and a monitoring and evaluation mechanism for the implementation of the actions identifies.
During its extraordinary session of 31 March 2012, the Council took note of the terms of the
economic and financial sanctions imposed by the Economic Community of West African States
(ECOWAS) on the leadership of the National Committee for the Re-establishment of Democracy and
the Restoration of the State (CNRDRE) and its associates in ECOWAS member countries. The Council
showed great concern over the socio-political situation in Mali and its consequences on the Malian
economy as well as the economy of the Union. The Council congratulated the heads of the WAEMU
Institutions and Organs for the precautionary measures it took to deal with the situation. At the outcome
of its proceedings, the Council took the following decisions:
As a precautionary measure, the Central Bank of West African States (BCEAO), the West African
Economic and Monetary Union (WAEMU) Commission, the West African Development Bank (WADB),
the West African Monetary Union Banking Commission (WAMU BC) and the Regional Council for
Public Savings and Financial Markets (CREPMF) should only collaborate with people who are
habilitated by the legitimate Government of the Republic of Mali exercising its powers and recognised
by the Conference of Heads of State and Government of the Union.
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Meanwhile, the BCEAO has been instructed to suspend all movements of funds in the accounts opened
in its books under the name of the Malian treasury department. However, the BCEAO was authorised to
complete suspended transactions pertaining to payments of Malian government securities that had
reached maturity, regarding which authorisation to provision a special payment account was expressly
given to the Bank prior to the start of the crisis. Similarly, the BCEAO should continue to carry out
transactions with Malian credit institutions, with the exception of those involving the Malian treasury
department.
To preserve the smooth running of the monetary and financial market of the Union, the BCEAO is
authorised to renew the Malian treasury bills and bonds issued through bidding as they arrive at
maturity, pending the re-establishment of proper running of the accounts of the Malian treasury
department in the books of the Central Bank.
The Council of Ministers also decided to take the necessary steps to guarantee the security of the
personnel and assets of the BCEAO and the WADB, in compliance with Article 39 of the WAMU Treaty,
and the WAEMU Commission.
During its extraordinary session of 9 May 2012, the Council of Ministers reviewed the draft agenda
for the 16th ordinary session of the Conference of Heads of State and Government of the Union held on
06 June 2012 in Lomé.
During its extraordinary session of 10 May 2012, the Council of Ministers reviewed the recent
economic and financial situation in WAEMU as well as the outlook for FY 2012.
The Ministers were concerned with: the repercussions of the slowdown in global growth on the Union’s
economy, the poor 2011/2012 crop year in Sahelian countries and the socio-political crises in Mali and
Guinea-Bissau. These factors, when taken into account, should lead to downward revision of GDP
growth forecasts for financial year 2012, initially projected at 6.4%. The Ministers noted an increase in
inflationist tensions in the Union, essentially attributable to the increased price of local cereal products
and imported foodstuffs. In this regard, they were congratulated for the initiatives undertaken in the
various member States concerned as well as community-wide to reduce the risks of food insecurity
affecting the population and especially the most vulnerable groups. They also undertook to act in
synergy with a view to implementing actions to offset the increase in the prices of the main consumer
goods and boosting agricultural production in the Union.
The Council of Ministers approved the guidelines proposed by the BCEAO, with a view to setting up a
specific legal framework governing the treatment of accounts that have been inactive for an extended
period of time in financial institutions in WAEMU member States. The Ministers asked the BCEAO to
finalise draft regulatory instruments governing such dormant accounts and submit them to the Council
during one of its upcoming sessions.
During its ordinary session of 29 June 2012, the Council of Ministers, having reviewed the recent
economic and financial situation of WAEMU, noted that the macroeconomic outlook was marked with
uncertainty linked to a slowdown in the global economy and the impact of socio-political crises in Mali
and Guinea-Bissau. Thus, the real rate of growth in the GDP in 2012 stood at 5.3% against an initial
forecast of 6.4%. In this context, the Council was particularly pleased that Côte d’Ivoire had reached the
Heavily Indebted Poor Countries (HIPC) Initiative completion point, thereby opening up better prospects
for faster growth and poverty reduction in the country, with positive repercussions for the Union as a
whole.
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The Council was pleased to note the easing of inflationary pressures in recent times, notably linked to
the measures taken by the member States and community institutions to fight the high cost of living.
Inflation, measured by the harmonised consumer price index, stood at 1.8%, year over year, as at the
end of May, after 2.8% at the end of February 2012.
In this regard, the Council was pleased that the drop of twenty-five (25) basis points in the BCEAO
leading rates aimed at creating the conditions for stronger growth in the Union. To take full advantage of
the easing of the monetary policy, the Council urged the member States to focus on furthering public
finance reforms, the quality of public spending and measures designed to stimulate productive
investments in high-growth sectors.
The Council also approved the books of the BCEAO and determined the allocation of the earnings of
FY 2011.
During its ordinary session of 28 September 2012, having reviewed the economic and financial
situation in the Union, the Council of Ministers noted with satisfaction the deceleration of inflationist
pressures, thanks to the member States’ efforts to fight against the high cost of living and thanks to the
drop in fuel prices in certain States. The inflation rate stood at 1.5% year over year as at the end of
June, after 2.5% at the end of March 2012.
The Ministers observed that the 2012/2013 was successful, boding well for the recovery of economic
growth in the Union, expected to reach 5.3% in real terms in 2012, against 0.6% in 2011.
However, the Council was concerned with the negative trends in the international situation that could
have repercussions on the performances of the Union. These performances could also be affected by
the persistent security situation in certain member States.
To consolidate economic growth in the Union, the Ministers stressed the pursuit of structural reforms to
create the conditions for mobilisation of internal and external resources, with a view to their allocation to
investments designed to increase and diversify production.
In the framework of the implementation of reforms aimed at deepening the financial sector, the Council
adopted the uniform bill on the treatment of dormant accounts on the books of financial institutions in
the member States of the Union.
The Ministers also stated their agreement with the guidelines proposed by the Central Bank with a view to
setting up a system to protect the deposits of financial institutions in WAMU and instructed the BCEAO to
continue work towards the creation of a Deposit Guarantee Fund in the Union.
The Council of Ministers approved a list of firms and alternates to audit the accounts of the BCEAO for
financial years 2012, 2013 and 2014.
During its ordinary session of 14 December 2012, having reviewed the monetary, economic and
financial situation of the Union, the Council of Ministers was pleased with the performances recorded in
terms of economic growth, thanks to the significant increase in production at the outcome of the
2012/2013 crop year, the strong recovery in the economy of Côte d’Ivoire and the rise in gold and oil
production. The latest forecasts predicted a real growth rate of 5.8% in the GDP for the 2012 financial
year, after 0.6% in 2011.
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The Council noted a slight increase in inflation which stood at 2.7%, year over year, in September 2012,
after 2.1% in June 2012. This increase in the general price level was linked to the rise in prices of local
cereals and fisheries products as well as the upward adjustment in fuel prices in certain States. However,
inflation slowed in the final quarter of 2012, linked to the adequate supply of the market with local cereals
produced by the 2012/2013 crop year.
In order to achieve stronger economic growth in the Union and reduce poverty, the Ministers stressed the
urgent need to implement public policies designed to improve the business and governance
environments. They also stressed the need to continue efforts to accelerate implementation of economic
and social infrastructure projects.
The Council approved the conclusions of the report of the BCEAO/member State working group in charge
of proposing measures for the preservation and consolidation of the viability of the microfinance sector in
WAMU. It urged the member States and the BCEAO to waste no time in implementing the envisaged plan
of action, taking account of the unique features of each country.
The Council also approved the draft uniform decree authorising bank-like financial institutions to receive
public deposits of funds.
With a view to ensuring the consistency of the national legislation in force with the new regulations on the
external financial relations of WAEMU member States, the Council adopted the draft uniform law on
disputes involving violations of the regulation on external financial relations of member States of the Union
as well as its two implementing decrees. In this regard, the Council urged all of the member States to
carry out the necessary step to ensure the domestication of the legal instrument in each State by 31
December 2013 at the latest.
The Council also set 31 December 2013 as the deadline for adoption by national Parliaments and
enactment of the uniform law on the treatment of dormant accounts on the books of financial institutions,
whose entry into force is scheduled for 1 January 2014.
The Council further approved the downward revision from 75% to 50% of the prudential standard ratio for
coverage of medium- and long-term uses, as of 1 January 2013. Finally, as of the same date, the Council
abrogated the portfolio structure ratio for credit institutions.
6.1.3 - BCEAO Monetary Policy Committee
The BCEAO Monetary Policy Committee (CPM) held four (04) ordinary meetings under the
chairmanship of Mr Tiémoko Meyliet Koné, Governor of the Central Bank and statutory chairman,
respectively on 07 March 2012, 11 June 2012, 05 September 2012 and 07 December 2012 at BCEAO
Headquarters in Dakar.
During its ordinary session of 7 March 2012, the Committee examined the economic, financial and
monetary situation in the West African Monetary Union (WAMU) in the light of recent trends in the
international situation. In particular, it analysed the risk factors that could affect price stability and
economic growth prospects in the Union.
The Committee observed that, since the beginning of FY 2012, the inflation rate showed an upward
trend linked to the impact of the poor 2011/2012 crop year on local cereal prices, notably in Sahelian
countries. Thus, for the month of February 2012, the year over year inflation rate was estimated at
2.9%, after 2.5% in December 2011.
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The medium-term outlook predicted that inflation would remain high, with a rate ranging between 3.0%
and 3.6% over the first three quarters of FY 2012, before declining again beginning in October 2012,
based on the hypothesis that the 2012/2013 crop year would be successful. Forecasts also situated
inflation, over a twenty-four (24) month period, at 2.6%, below the upper limit of the price stability target.
In light of the inflation risk, the members of the CPM recommended that the member States of the
Union waste no time in implementing the actions identified during the extraordinary session of the
Council of Ministers of 20 February 2012, on food security and boosting agricultural production in
WAEMU, and particularly focusing on the improving supplies of cereal markets in the Union,
development of storage infrastructure, water control and increasing production of counter-seasonal
crops.
After analysing the economic situation, the members of the CPM pointed out that, in 2012, the WAEMU
member States continued to operate in an unfavourable international environment marked by a
slowdown in global growth. The situation in the Union would also likely be affected by the poor
2011/2012 crop year.
The CPM noted that these factors cast doubt over the performance of the growth forecasts for FY 2012,
which could turn out to be lower than the rate of 6.4% initially forecast. The analysis of monetary
conditions showed that bank liquidity had fallen significantly since the second half of 2011.
Other than cyclical factors, the trend was caused by structural changes in the economies of the Union,
leading to significant import financing needs to realise current private and public investments. This
situation caused tension on money market interest rates.
The outlook was that the demand for bank liquidity was likely to remain high, in light of the resources
required to cover the financing needs expressed by the States for financial year 2012.
Based on the foregoing analyses, the Monetary Policy Committee decided to maintain the leading rates
of the BCEAO at their current levels. Thus, the minimum interest rate for bidding on calls for tenders
and the marginal lending rate respectively remained at 3.25% and 4.25%.
Furthermore, with a view to easing bank liquidity constraints and consolidating the conditions for
appropriate financing of the economy, the CPM decided to reduce the required reserve coefficient to
5.0% for all banks in all countries of the Union, a decrease of two (2) percentage points, effective 16
March 2012.
The Monetary Policy Committee will monitor inflation trends very closely, notably in light of the risks
linked to the impact of the poor 2011/2012 crop year on prices.
During its ordinary session of 11 June 2012, the Committee reviewed the economic, monetary and
financial situation in the West African Monetary Union (WAMU) in the light of recent trends in the
international situation. It particularly analysed the risk factors that could affect price stability and the
outlook for economic growth in the Union.
The Committee observed a slowdown in the rate of increase of overall consumer price levels in the
Union in recent times, thanks to measures implemented nationally and regionally to fight against the
high cost of living and offset the impact of supply shocks. Thus, the rate of inflation rose from 2.3% year
over year at the end of January 2012 to 2.8% at the end of February 2012, but fell to 2.5% at the end of
March 2012. It stood at 0.6% in April 2012.
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The medium-term outlook forecasted an inflation rate at a level compatible with the objective of price
stability in the Union. It was expected to stand at around 2.0% over the medium term assuming a
normal 2012/2013 crop year.
Based on their analysis of the situation, the members of the Monetary Policy Committee noted that
economic growth in the Union in financial year 2012 would be better than in 2011 due to rapid
economic recovery in Côte d’Ivoire, the dynamic performance of the mining sector and continued
public investments in infrastructure. However, concerns existed in light of the impact of the sociopolitical crises in Mali and Guinea-Bissau as well as the uncertainties arising from the international
environment.
In view of these uncertainties, the latest estimates placed the real rate of growth in the Gross Domestic
Product of the Union at 5.3% in 2012 against an initial forecast of 6.4% made in November 2011.
Based on its assessment of the balance of risks, the Monetary Policy Committee decided to lower the
leading interest rates of the BCEAO by 25 basis points. The BCEAO’s minimum interest rate for bidding
operations to inject liquidity and its marginal lending window interest rate were therefore established
respectively at 3.00% and 4.00% effective 16 June 2012.
In conjunction with the measures taken in terms of interest rates, the Monetary Policy Committee
stressed the need for the member States to continue efforts to put public finances back in order and
implement structural reforms, in order to consolidate the foundations of economic growth in WAMU.
On the money market, the Committee observed that the tensions that justified the lowering of the
required reserve coefficient in March 2012 had begun to ease. The weighted average rate for the
one-week interbank compartment, which stood at 4.67% in March 2012, had fallen to 4.25% in May
2012.
The Committee therefore decided to maintain the required reserve coefficient applicable to banks
unchanged, at the level of 5.0% in force since 16 March 2012.
During its ordinary session of 5 September 2012, the Committee examined the economic, financial
and monetary situation in the West African Monetary Union (WAMU) in the light of recent trends in the
The Committee observed a continuing trend to moderation of inflationist tensions in WAMU. The
inflation rate stood at 1.5%, year over year, in the second quarter of 2012 after 2.5% the previous
quarter.
According to the medium-term outlook, the inflation rate was expected to stand at a level compatible
with the objective of price stability in the Union. It was expected to be in the area of 2.3%, year over
year, in the medium term, assuming a normal 2012/2013 growing year.
Based on their analysis of the economic situation, the members of the Monetary Policy Committee
pointed out that the available cyclical indicators confirmed a slowdown in global economic growth in
2012, in a context of tensions on the international financial markets. The available forecasts predicted a
rate of growth of 5.3% in the Union in 2012.
105
Regarding the money market, the Committee observed that the drop of 25 basis points in the leading
rates of the BCEAO, which took place on 16 June 2012, had had an impact on the money market rates.
The interest rates on the one-week compartment of the interbank market were down, sliding from an
average of 4.67% in March 2012 to 4.03% in July 2012. An easing of interest rates on Treasury bill
issues was also observed. As an illustration, the weighted average rates on twelve-month Treasury bill
issues dropped from 6.26% in the second quarter of 2012 to 5.76% in July 2012.
Based on these analyses, the Monetary Policy Committee decided to maintain the leading rates at their
current levels. The minimum interest rate for bidding on calls for tenders and the marginal lending rate
respectively remained at 3.00% and 4.00%.
The Committee also decided to maintain the required reserve coefficient applicable to the banks at its
level of 5.0%, in force since 16 March 2012.
The member States, for their part, were urged to continue and reinforce the structural actions already
undertaken to improve the agricultural supply in the Union, in order to help contain price rises over the
short and medium term.
During its ordinary session of 7 December 2012, the Committee examined the economic, financial
and monetary situation in the West African Monetary Union (WAMU) in the light of recent trends in the
After analysing the trend in inflation, the Committee noted a slight rise in the harmonised consumer
price index in the third quarter. Year over year, the inflation rate rose from 2.1% in June to 2.7% at the
end of September 2012, due to the upward adjustment of fuel prices in certain member States and the
rise in prices of local cereals and fisheries products.
Inflation was expected to slow down in the fourth quarter of 2012 to reach 2.5% at the end of December.
The main factor explaining the decrease in inflation was the improved supply of cereal markets. Overall,
medium-term inflation forecasts were in phase with the price stability objective pursued in the Union. As
an annual average, the inflation rate was expected to stand at 2.3% in 2012 against 3.8% in 2011. On the
24-month horizon the rate was projected at 2.4%.
The trend in cyclical indicators showed that economic activity in WAMU continued to rally, especially in
the secondary and tertiary sectors. The industrial production index was up by 3.0% in the third quarter,
after progressing by 1.4% and 3.2% in the first and second quarter of 2012. The retail trade sales figure
index, for its part, recorded net growth of 17.6% over the first nine months of the year, compared to a
6.5% increase over the same period in 2011.
After reviewing the outlook for economic growth in the Union, the Committee estimated that growth
performances would be better than forecast. The latest estimates predicted 5.8% growth in the gross
domestic product of the Union in 2012, an upward adjustment of 0.5 percentage point compared to
forecasts three months earlier. For FY 2013, the economic growth rate was expected to increase to
6.5%, supported by the efforts deployed by the member States with a view to increasing investments in
priority sectors, particularly agriculture and basic infrastructure.
Monetary conditions remained favourable overall. Money market interest rates continued to ease. The
weighted average rate for one-week interbank transactions averaged 4.13% over the third quarter
against 4.24% during the second quarter of 2012. The weighted average rate for Treasury bill issues
was 5.63% during the third quarter compared to 5.72% the quarter before.
106
Based on these analyses, the Monetary Policy Committee decided to maintain the leading rates of the
BCEAO unchanged at their current levels. The minimum interest rate for bidding on calls for tenders for
injection of liquidities and the marginal lending rate respectively remained at 3.00% and 4.00%.
The Committee also decided to maintain the required reserve coefficient applicable to the banks at its
level of 5.0%, in force since 16 March 2012.
The Committee urged the member States to accelerate implementation of actions identified at national
and regional levels with a view to boosting agricultural production and helping to ease food prices. It
also recommended continuing the efforts undertaken to increase the level and quality of the necessary
infrastructure to speed up economic growth. The members of the Committee agreed to maintain
constant vigilance in monitoring price trends in order to take the appropriate measures if necessary.
6.1.4 - Board of Directors of the BCEAO
The BCEAO Board of Directors held two (02) ordinary sessions, chaired by Mr Tiémoko Meyliet Koné,
Governor of the Central Bank and statutory chairman of the Board, respectively on 28 June 2012 at
BCEAO Headquarters in Dakar, and on 13 December 2012 at the BCEAO Main Branch Office in
Niamey.
During the financial year under review, the composition of the Board of Directors underwent the
following changes:

Regarding the Republic of Benin, Madame Fatima Sékou Madougou, Director General of
Treasury and Public Accounting, was appointed to the Board of the BCEAO, as of 15 June 2012,
replacing Mr Alexis Bonaventure Houeha;

Regarding the Republic of Guinea-Bissau, Mr Jorge Anibal Pereira, Director General of the
Treasury, was appointed to the Board of the BCEAO, as of 15 June 2012, replacing Mr Joao Viriato
Barbosa Rodrigues;

Regarding the Republic of Togo, Mr Kodjo Tépé-Sévon Adedze, Director General of Customs,
was appointed to the Board of the BCEAO, as of 11 September 2012, replacing Mr Badawasso
Tchanenzy Gnaro;

Regarding the French Republic, Mr Arnaud Buisse, Deputy Director in charge of Multilateral
Financial Affairs and Development at the General Directorate of the Treasury, was appointed to the
Board of the BCEAO, as of 04 September 2012, replacing Mr Yves Charpentier.
During its ordinary session of 28 June 2012, the Board reviewed and approved the financial
statements of the BCEAO as at 31 December 2011 and decided to submit them at the upcoming
ordinary session of the Council of Ministers of the Union. In this regard, it congratulated the Central
Bank for the performance it had achieved in a difficult economic and financial environment.
The Board further authorised the Central Bank to purchase ten (10) additional shares allocated to it by
the SWIFT Society, in line with the growth in transactions by the member States of the Union via that
channel.
During its ordinary session of 14 December 2012, the members of the Board reviewed and
approved the budget for the Central Bank for financial year 2013.
107
The Board of Directors also took note of the work conducted by the BCEAO Audit Committee, which
met on Wednesday 12 December 2012, on the premises of the BCEAO Main Office in Niamey, notably
for the purpose of approving the programme for controlling Central Bank structures for FY 2013 as well
as the working programme of the Audit Committee for FY 2013.
6.1.5 - BCEAO Audit Committee
The BCEAO Audit Committee held three (03) meetings, under the chairmanship of its statutory
chairman, Mr Abdoulaye Touré, respectively on 26 and 27 June 2012 at BCEAO Headquarters in
Dakar, on 24 September 2012 on BCEAO Main Branch premises in Cotonou and on 12 December
2012 on BCEAO Main Branch premises in Niamey.
6.2 - ADMINISTRATION OF THE BCEAO
6.2.1 - Human resource management
6.2.1.1 - Organisation chart and individual measures
The organisation chart of the Central Bank underwent modifications during the course of the 2012
financial year and, regarding individual measures, appointment decisions were taken.
6.2.1.2 - Staffing
As at 31 December 2012, the total staff of the Central Bank, including all grades, numbered 3,605
against 3,494 at the end of December 2011. This figure included 3,552 active staff members deployed
on BCEAO sites, and 53 staff members on secondment or leaves of absence.
Active staff, distributed among Headquarters, the 08 Main Branches, the 12 Sub-Branches, the
Representations and the Office of the General Secretary of the WAMU Banking Commission, was
increased by 121 members, including 10 employees returning to the Bank, for a 3.47% increase
compared to the level of staffing on 31 December 2011.
Numbering 1,191, including 70 top management staff members and Board Members, executive staff
represented 33.04% of active personnel. Their number grew by 19 since 31 December 2011.
Administrative and technical staff represented 66.47% of the active staff on 31 December 2012. Their
numbers increased by 102 staff members, compared to the level on 31 December of the previous year.
Broken down by site, overall numbers of active staff members as at 31 December 2012 were as
follows:

Headquarters: 711;

National Branches (Main Branches and Sub-Branches): 2,723;

BCEAO Representation with European Cooperation Institutions: 04;

Representation of the Governor with the WAEMU Commission: 10;

Office of the Secretary General of the WAMU Banking Commission: 104.
108
In terms of the gender breakdown on 31 December 2012, male staff represented 61.94%,
corresponding to 2,200 members, while women represented 38.06%, or 1,352 staff members.
The changes in the numbers of staff members in the various professions since 1995, as well as
retirement data, are annexed to this report.
Graph 11: Trends in BCEAO staff from 1994 to 2012
4 200
3 900
2%
3 600
1%
3 300
3 000
2 700
1%
1%
1%
24% 23%
25%
2%
2%
2%
2%
2%
2%
27% 28% 28%
29% 29% 31% 33% 34%
2%
2%
1%
2%
2%
2%
34% 33% 34%
33% 33%
33%
1%
33%
2%
31%
2 400
2 100
1 800
1 500
1 200
72% 71% 71% 69% 70% 67% 66% 64% 64% 65% 65% 65% 65%
66% 66% 67%
74% 75% 73%
900
600
300
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Personnel
non cadre
Non-executive
staff
Agents
d'encadrement
Executive
staffstaff
Executive
Topmanagement
management
and
BoardMembers
Members
Haut
management et
Directeurs
Top
and
Board
Source: BCEAO.
6.2.1.3 - Training
During the 2012 financial year, COFEB, the West African centre for bank training and studies, continued
to offer training components for BCEAO staff, economic and financial administration employees, and
the staff of the credit institutions of the Union and partner central banks.
In terms of its regular activities, the Centre implemented training activities in the form of on-site
courses and seminars and through videoconferencing. Decentralised training activities were conducted
at remote sites. The themes examined during the training activities chiefly focused on the work of the
Central Bank.
Furthermore, part of staff training took the form of enrolling Bank staff members in courses organised by
other institutions or training organisations. All in all, in-service training was provided for two thousand
eight hundred and seventy-six (2,876) staff members distributed as follows:
109

607 staff members in forty-five (45) on-site seminars organised at Headquarters;

891 participants in nine (9) videoconference training activities;

1,051 participants in forty-one (41) decentralised courses and seminars implemented at remote
sites;

91 staff members in sixty-two (62) internships and on-site briefing activities organised by external
partners and training institutions;

236 staff members in on-line training.
Regarding specific activities aimed at improving the operational capacities and performances of
BCEAO staff, COFEB organised a conference on 14 March 2012, on the theme of: “Central Banks
facing financial and sovereign crises”, led by Mr Gilles Morisson of the Banque de France. Another
activity planned as reinforcement of the economic culture for staff of the Bank pertained to the creation
and dissemination to BCEAO staff of a publication called “Les Précis du COFEB” (COFEB summaries).
These are synthetic and didactic documents on specific themes directly linked with the core tasks of the
BCEAO and/or the main, recurring economic and financial themes whose mastery was deemed
indispensable by all of the Bank personnel. The first issue was published in September 2012 on the
theme: “Monnaie et Politique monétaire de la BCEAO” (BCEAO monetary policy and currency). It was
disseminated in paper format and put on line on the intranet.
Regarding training for economic and financial administration employees and staff of credit
institutions in the Union, the following activities were carried out:

organisation of classes for the 34th cohort of the COFEB diploma programme for the 2011-2012
academic year. The cohort included thirty-six (36) trainees: thirty-five (35) economic and financial
administration employees from Union member countries and one (1) staff member from the Central
Bank of the Republic of Guinea;

preparation and organisation of the prerequisite test for the selection of trainees for the 35th cohort
of the diploma programme on 20 June 2012. The meeting of the Scientific Committee that decided
on the results of the test was held on 26 July 2012 and a make-up test was held on 14 November
2012 for the States that had not met the required quota of five (5) scholarships granted by the
BCEAO, namely Côte d’Ivoire, Guinea-Bissau, Mali and Senegal;

a training programme was developed for employees of credit institutions in the Union in the
framework of the priority actions defined by the mission statement of the Director General of Human
Resources and Training. The programme was designed through a participatory process that
distinguished three (3) categories, namely: training activities pertaining to the regulatory obligations
of credit institutions, sessions focusing on themes relating to the work of credit institutions, and
crosscutting training on management and leadership;

the organisation of six (6) regional seminars in the framework of the external training programme.
These seminars were attended by one hundred and seventeen (117) employees of the economic
and financial administrations of the member States of the Union and the Central Banks of
Mauritania, the Republic of Guinea and Burundi. These training activities focused on public policy
evaluation, macroeconomic management, the framework for the development of medium-term debt
management strategies, economic forecasting and cyclical analysis techniques, management of
failing banks and resolution of banking crises as well as public investment planning and
programming.
110
Furthermore, in the framework of reinforcing external partnerships, and with a view to diversifying the
training provided and significantly increasing the level of supply, COFEB undertook steps to develop
partnerships with renowned training institutions in France and Great Britain. The goal was to make
quality training products meeting international standards available to the target public of BCEAO staff
and executive personnel from WAMU credit institutions. In this framework, a cooperation agreement
was signed with prestigious business school HEC-Paris on 13 December 2012 in Dakar. Work towards
the concretisation of cooperation projects with other schools continued.
COFEB also continued to formalise partnerships with the training institutes of other central banks and
international financial institutions (Institut Bancaire et Financier International (IBFI) de la Banque de
France and Bank Al Maghrib).
6.2.2 - Changes in the BCEAO network
The process of reconstruction of the Sub-Branch buildings in Bouaké and Man and rehabilitation of the
buildings of the Korhogo Sub-Branch, which was suspended in 2010 and 2011 due to the post-electoral
crisis in Côte d’Ivoire, resumed during the year. All of the firms involved in the projects were chosen
through calls for tenders in September 2012.
As for the selection of the architects, architecture competitions were launched in September and
October 2012 to choose the projects, whose realisation was to begin in 2013.
6.2.3 - Information and communication system
During FY 2012, the Central Bank continued actions with a view to enhancing the integration and
performance of its information system.
In this framework, the project to redesign the data processing centre which began in 2011 was
continued. The new Datacenter, to enter into production in the first quarter of FY 2013, will ensure
greater availability of systems and applications. It will guarantee a high level of service for the internal
structures of the Bank as well as credit institutions that use payment systems.
In the area of network infrastructure, the Bank equipped itself with a back-up satellite link to protect
itself against potential failures of Internet access provided by local operators. In addition, the Central
Bank reinforced its telecommunications network by increasing the spatial segment capacity used on its
satellite. This made it possible to anticipate future needs, particularly the commissioning of the
automatic bank securities and cash management system known as TRESOr and the implementation of
a back-up site.
The Central Bank also redesigned its videoconference system by replacing obsolete equipment and
optimising the use of the VSAT network bandwidth. The new system offers high definition image quality.
Where computer development is concerned, the activity focused on restructuring of the intranet portal,
which now offers new functionalities that help improve communication and collaborative work.
Finally, in organisational terms, the Bank equipped itself with a new methodological framework to better
control the management of its IT projects.
111
6.2.4 - Modernisation of documentation and archives
In the framework of the modernisation of its documentation and archive functions, an integrated system
was set in place to make it possible to share archive and documentary resources across all BCEAO
sites. During FY 2012, two (2) actions were carried out in relation to documentation. They focused on
installing a new version of the documentary software used in the Central Bank and on capacity building
for documentalists and archivists. The migration of the documentary database, including the
bibliographies of Headquarters, the National Directorates and the office of the Secretary General of the
WAMU Banking Commission, to a new version of the software, was completed. The new, more userfriendly version, known as “Full Web”, contributes to the dynamics of continuous improvement of
documentary management. In all, sixteen (16) staff members from the BCEAO and the office of the
Secretary General of the WAMU Banking Commission were trained to use the software.
6.2.5 - Risk management and control activity mechanisms
The work accomplished in financial year 2012 pertained to operational control activities, internal audit
and inspection and external controls. It also included the continuation of work and projects initiated with
a view to improving the operation of the control and risk-management mechanism. Capacity building for
staff involved in controls was also continued.
Regarding first-level or operational control, the activities implemented essentially focused on
exploitation of the various reports, as well as monitoring of the implementation of recommendations.
The exploitation of the reports of the Operations Controllers made it possible to monitor the
implementation of the recommendations of the various control bodies. In this connection, quarterly
summary reports were produced, focusing on the anomalies noted, the causes of the dysfunctions
identified, the extent to which recommendations were implemented, and an analysis of the risks
incurred by the Central Bank.
In addition, quarterly reviews on compliance with the rules on the investment of BCEAO foreign exchange
reserves were regularly produced and submitted to the exchange reserve management policy and
supervision committee (COSGRC) by the Comptroller General.
The various tasks and projects initiated in 2011 with a view to improving the operation of the control
and risk-management mechanism were continued.
The Government of the Bank validated the BCEAO risk management mechanism guidelines document
and a project group comprising representatives of the various structures of the Bank was set in place.
The start-up of the project was marked by an important message from the Governor published on 06
December 2012.
Regarding crisis management and business continuity management, work on the project for the
implementation of a Business Continuity Plan (BCP) was finalised through missions conducted by the
members of the project’s Technical Committee, who travelled to all of the sites of the Central Bank with
the exception of the National Directorate of the BCEAO for Niger and the BCEAO Representation with
European cooperation institutions. Missions to these two sites are to take place during financial year
2013. The first test of the business continuity mechanism was organised on Thursday 29 November
2012 in order to evaluate the crisis management tools and assess the reactions of the operational and
crisis-management structures concerned.
112
The test results authorised the Steering Committee to officially accept the work of the project during its
meeting of 05 December 2012. During the meeting, the start-up of the phase of maintaining the BCEAO
crisis management and business continuity mechanism in working order was also approved.
The decision on the creation of permanent crisis-management and security organs within the Central
Bank of West African States was revised to take account of the reorganisation of the Bank’s
departments in January 2012 and the results of the work on the Business Continuity Plan (BCP).
In 2012, capacity building for the actors in charge of risk prevention and first-level audit took the
form of the organisation of a number of training activities. Training activities over the period notably
included the participation of two (2) Risk Prevention Directorate (DPR) staff members in seminars on
the themes of “Risk management according to ISO 31000” and “Deploying an overall risk management
system” organised by AFNOR in Paris, respectively from 2 to 7 April 2012 and from 24 to 26 September
2012. The DPR also participated in a training session on the evaluation of central bank back-up
facilities, organised jointly by the IMF Finance Department and the Joint Partnership for Africa (JPA) in
Tunis from 16 to 20 April 2012.
The DPR also took part in a seminar on central bank governance organised in Paris by the International
Banking and Finance Institute (IBFI) from 24 to 27 September 2012. It also participated in a training
seminar on internal audits and risk management in central banks, organised by the International
Banking and Finance Institute (IBFI) in Paris from 8 to 12 October 2012.
Finally, a seminar facilitated by the 2B Consulting firm was organised by the Risk Prevention
Directorate on the theme of: “Internal audits in central banks”, from 17 to 22 December 2012 at BCEAO
headquarters, for DPR staff members and Operations Controllers.
Second-level audit activities were conducted in the framework of the implementation of the audit
programme of the Directorate of Inspection and Audits (DIA) adopted by the Governor and approved by
the BCEAO Audit Committee. The programme took account of the audits that were not completed in
2011, of the risk profiles of the entities included in the Bank’s audit scope as well as specific requests
made by the Authorities.
In this regard, an evaluation was conducted of the mastery of activities by the operational structures
and an assessment was made of compliance with the instructions and regulations in force.
Audits were carried out in one (1) Central Services Directorate on transfers issued outside WAEMU.
Audits were also conducted on the cash staff and the method of handling used to process cancelled
banknotes, respectively in two (2) Main Branches. The same applied to areas at risk in one (1) Main
Branch and one (1) Sub-Branch. The electronic banking project activities of one (1) Organisation linked
to the BCEAO were also audited.
Cash audits and destruction of cancelled banknotes took place in six (6) Main Branches and eleven (11)
Sub-Branches. These operations helped clear out the vaults on the sites and assess compliance with
regulatory standards in terms of compartment occupation, to reduce asset and issuance risks
associated with the conservation of securities.
Special missions and audits carried out during the financial year upon request by the Bank Authorities
included a cash incident in Burkina Faso, assistance with transferral of entries from the period when the
BCEAO network was temporarily closed in Côte d’Ivoire in 2011, and looking for vouchers to support
the restitution of deposits by the Ivoirian treasury department in the Branches that have been closed in
the country since 2002.
113
In addition, thirty-eight (38) transfers of powers and duties were supervised on various BCEAO sites.
These transfers followed the appointment of officials by the Governor in the framework of the
reorganisation of the Central Bank in 2012.
In the context of capacity building and in-service training for Auditors, a number of training activities
were implemented. Two seminars on internal audit topics facilitated by two (2) Central Banks that are
partners of the BCEAO (Banque de France and Al-Maghrib) and by the Institute of Internal Auditors
(IIA-Senegal) were organised for all Auditors.
In addition, training and study tours were organised at the Central Services Directorates at
Headquarters and at the National Directorate of the BCEAO for Senegal, for all staff appointed,
transferred or hired in financial year 2012.
Skills training was also organised in the abovementioned two (2) partner central banks, for six (6)
new Senior Auditors.
These trips were enriching in both individual and collective terms, in light of the experiences that were
shared. They provided an understanding of potential ways to improve practices and better
understand the importance and demands of compliance with international audit and quality
standards.
The coordination of external controls or third-level audit focused on the audit of the accounts of
the BCEAO for the 2011 financial year by the Statutory Auditor and the National Auditors. It also
focused on the activities carried out in the framework of the annual review of the management of
foreign exchange reserves by the Statutory Auditor-Comptroller. External audits also focused on
specific audit missions, such as audits of the accounts of the macroeconomic management training
component of the BCEAO/BEAC project, under FY 2011.
Follow-up was also carried out on the recommendations of the IMF Safeguards Assessments. During
the period under review, new External Auditors of the Bank were appointed for FY 2012, 2013 and
2014.
6.2.6 - Management control mechanism
In FY 2012, the Management Control (CG) mechanism followed a process of change in line with the
quality management system. The aim was to improve the performances of the Central Bank in terms
of meeting the expectations of its clients and partners.
In this regard, the principal activities carried out focused on strategic planning implementation,
deploying a new, efficient steering mechanism and setting up a new approach to analytical
accounting.
Regarding strategic planning, the priority actions assigned to each Directorate General by the
Governor at the beginning of the financial year constituted the foundation for the 2012 edition of the
2011-2015 Strategic Plan. These actions were regularly monitored through the priority action
implementation programme (PAP) progress review.
114
The new steering mechanism meets the need to refocus steering on the performance of the executive
staff through better running of the Structures and more efficient management of activities. It is based on
three essential points: a dashboard, actions for improvement and a steering body. Training sessions and
individualised coaching were organised in this framework for all Central Services Directors at
Headquarters and the Main Branch Directorate in Dakar, with support from a consulting firm. Special
training sessions were also provided for the Bank’s upper management, its National Directors, and the
Secretary General of the Banking Commission. They will be continued in 2013 to cover all of the
structures of the Bank.
As for the cost accounting component, a process-focused methodological approach was developed. It
focused on optimising the organisation and resources of the Bank, representing the third thrust of the
quality policy. In 2012, the implementation of cost accounting focused on two pilot processes with
clearly identified data requirements. It was expected to be generalised to the other processes in 2013.
115
APPENDICES
Timeline of major monetary policy measures adopted by the BCEAO between 2002 and 2012
7 January 2002
In the framework of the regulation of banking liquidity in the West African Monetary Union (WAMU), the Central
Bank of West African States made its first invitation to tender for a Central Bank bond issue under 2002 at value
date 7 January 2002. Four hundred bonds at a face value of 20.0 billion, with a 2-week maturity, were put up for
adjudication.
Six bidders whose bids totalled 17.3 billion were selected up to a maximum of 16.8 billion. The marginal rate was
5.00%.
16 April 2002
The Central Bank of West African States decided to raise the reserve requirement ratio applicable to banks
in Mali from 3.00% to 9.00%, as of the formation period beginning on 16 April 2002. Accordingly, the reserve
requirement ratios applicable to WAMU banks were set, as of April 16 April 2002, as follows:
- Benin: 9.00%;
- Burkina: 3.00%;
- Côte d'Ivoire: 5.00%;
- Guinea-Bissau: 3.00%;
- Mali: 9.00%;
- Niger: 5.00%;
- Senegal: 9.00%;
- Togo: 3.00%.
The reserve requirement ratio for credit-issuing financial institutions remained unchanged at 5.0% for all
WAMU member States.
7 July 2003
In light of the favourable results achieved in terms of inflation control and general monetary stability, the Central
Bank decided to reduce its leading rates by 100 basis points as of Monday 7July 2003. Thus, the discount rate
was reduced from 6.50% to 5.50%, and the repo rate, from 6.00% to 5.00%.
This easing of interest rate policy was indicative of the confidence of the common central bank in the capacity of
the Union's financial system to ensure sound and proper financing of regional economic recovery. It supported the
dynamics of the regional financial market which was revitalised notably through issues of government bonds
organised in many Union States, with the assistance of the BCEAO. Lastly, the loosening of monetary policy
reflected the confidence of the private sector, savers, investors and financial institutions in the robustness of the
Monetary Union operating mechanisms.
116
20 October 2003
As the review of the economic, monetary and financial situation revealed encouraging signs of economic
recovery in most Union States, confirmation of a reduction in price pressures and the consolidation of foreign
exchange reserves, the Central Bank decided to continue easing its monetary terms by reducing its leading
rates by 50 basis points, as of Monday, 20 October 2003. The discount rate was lowered from 5.50% to
5.00%, and the repo rate from 5.00% to 4.50%.
The new flexibility of monetary policy was an expression of the confidence of the common central bank in the
capacity of the financial system to contribute to the sound financing of economic recovery in the member
States, at a lower cost. It also supported the dynamics of the regional financial market, which was revitalised
notably through issues of government bonds organised in many of the Union States, with the assistance of the
BCEAO.
16 March 2004
The Central Bank of West African States decided to raise the reserve requirement ratio applicable to banks
in Benin from 9.00% to 13.00%, as of the formation period which began on 16 March 2004. Thus, as of 16
March 2004, the reserve requirement ratios applicable to WAMU banks were set as follows:
- Benin: 13.00%
- Burkina: 3.00%
- Côte d'Ivoire: 5.00%
- Guinea-Bissau: 3.00%
- Mali: 9.00%
- Niger: 5.00%
- Senegal: 9.00%
- Togo: 3.00%
WAMU member States.
22 March 2004
In view of the favourable trends observed in the orientation of economic activity, inflation control and
consolidation of foreign exchange reserves, the Central Bank decided to continue easing its monetary terms
by reducing its leading rates by 50 basis points, as of Monday, 22 March 2004. Thus, the discount rate was
reduced from 5.00% to 4.50%, and the repo rate from 4.50% to 4.00%.
This new flexibility in the monetary policy following reductions of Central Bank leading rates by 150 basis
points in 2003, reflected the confidence of the common central bank in the capacity of the financial system to
back up the economic recovery observed in the Union member States with financing at a lower cost. It was
also aimed at encouraging investment initiatives to consolidate economic activity.
117
16 June 2005
The Central Bank raised the reserve requirement ratio applicable to banks: from 13.00% to 15.00% in Benin,
from 3.00% to 7.00% in Burkina, and from 5.00% to 9.00% in Niger, as of the formation period which began
on 16 June 2005. Thus, the reserve requirement ratios applicable to WAMU banks were set, as of 16 June
2005, as follows:
- Benin: 15.00%
- Burkina: 7.00%
- Côte d'Ivoire: 5.00%
- Guinea-Bissau: 3.00%
- Mali: 9.00%
- Niger: 9.00%
- Senegal: 9.00%
- Togo: 3.00%
WAMU member States.
24 August 2006
The Central Bank of West African States (BCEAO) raised its leading rates by 0.25 percentage point as of 24
August 2006. As of that date, the repo rate rose from 4.00% to 4.25% and the discount rate from 4.50% to 4.75%.
This decision, which was aimed at strengthening the contribution of monetary policy to macroeconomic
stability, was taken in a context marked by growing worry over a likely increase in prices in West African
Monetary Union (WAMU) member countries, which is liable to hinder the achievement of the price stability
objective and, consequently, sound and sustainable economic growth.
The Central Bank's decision was made in an international environment fraught with concerns about soaring
world oil prices, which hit new records. This dynamic, which impacts people's purchasing power and public
finances, was an additional factor of tension on prices in the Union.
The increase in the BCEAO's leading rates contributed to controlling inflation in WAMU and thus
safeguarding the competitiveness of member States economies.
1st quarter 2007
Monetary policy implementation during the first three months of FY 2007 was notably marked by the return of
the Central Bank on the money market, with the organisation of weekly auction operations to inject liquidity.
The objective pursued by the BCEAO in resuming those operations on 5 February 2007 was to control the
impact on interest rates of a noticeable reduction in banking liquidity at the end of 2006. The operations
should help create the conditions for optimal recycling of liquidities on the interbank market and preserve the
consistency of the rates hierarchy on the short-term capital market.
118
At the end of the first quarter of 2007, the Central Bank had organised seven auction operations to inject
liquidity. The bids received ranged between 18.1 and 40.9 billion. The proposed interest rates varied between
3.975% and 5.500%.
2nd quarter 2007
During the second quarter of 2007, the Central Bank continued to organise weekly bidding operations to
inject liquidity. At the end of the quarter, thirteen such operations had been organised. The bids received
ranged between 21.3 and 47.2 billion. The proposed interest rates varied between 4.0000% and 4.3500%.
3rd quarter 2007
During the third quarter of 2007, the Central Bank pursued its interventions on the money market. In that
framework, it organised thirteen auction operations to inject liquidity, bringing to thirty-three the total number
of operations organised since their resumption on 5 February 2007. The bids received ranged between 11.7
and 41.7 billion. The proposed interest rates varied between 3.0000% and 4.2000%.
4th quarter 2007
During the fourth quarter of 2007, the Central Bank continued its interventions on the money market. The
Bank organised thirteen auction operations to inject liquidity, thereby raising to forty-six the total number of
operations organised since their resumption on 5 February 2007. The bids received ranged between 29.9
and 97.8 billion. The proposed interest rates varied between 3.3000% and 5.0000%.
1st quarter 2008
In the first quarter of 2008, the Central Bank maintained its interventions on the money market.
The Bank organised thirteen (13) invitations to tender for injection of liquidities, bringing to fifty-nine the total
number of such operations since they were resumed on 5 February 2007. The bids received ranged between
65.1 and 135.5 billion. Interest rates offered ranged within a bracket of 2.7500% to 4.4000%, against a range
between 3.3000% and 5.0000% during the previous quarter.
2nd quarter 2008
During the second quarter of 2008, the Central Bank continued its interventions on the money market. It
organised thirteen (13) invitations to tender for injection of liquidities, bringing to seventy-two the total
number of such operations since they were resumed on 5 February 2007. The bids received ranged between
97.8 and 147.9 billion. Interest rates offered ranged from 3.7500% to 4.2500%, against a range of 2.7500 to
4.4000% the previous quarter.
3rd quarter 2008
During the third quarter of 2008, in light of threats to price stability within the Union, the Central Bank
decided, effective as of 16 August 2008, to raise its main intervention rate, the repo rate, by one half (½) of a
percentage point, from 4.25% to 4.75%. The discount rate was set at 6.75%.
119
Furthermore, the BCEAO maintained its weekly injections of liquidities. The amount put up for adjudication
remained stable at 100.0 billion between 30 June 2008 and 30 September 2008. Weekly weighted average
interest rates ranged between 3.9720% and 4.5682%, against a range of between 3.9407% and 4.2331%
during the previous quarter.
4th quarter 2008
In the context of the fourth quarter of 2008, with the beginning of the impact of the financial crisis on
economic activity, an inflation rate still high and relatively strong growth in credits to the economy, the Central
Bank maintained its main leading rate unchanged. The repo rate remained at 4.75%, the level at which it
stood since 16 August 2008.
The Central Bank also maintained its weekly injections of liquidities, raising the amount put up for
adjudication from 100.0 billion on 30 September 2008 to 160.0 billion on 31 December 2008. The policy
implemented by the Central Bank helped to meet the banks’ resource needs and reduce tensions on rates.
1st quarter 2009
Monetary policy implementation in the first quarter of 2009 was marked by the strengthening of the BCEAO
operational framework on the money market, which was reflected since 19 February 2009 by the activation of
the one-month tenders window in addition to the one-week window.
The BCEAO’s actions were aimed at reassuring the banks as to the Central Bank’s willingness to cover their
liquidity needs. They further contributed, in March 2009, to bringing about a change in the interbank market
rates at one week, in the range between the minimum subscription rate and the repo rate. In March 2009, the
average one-week interbank rate was 4.71% against 4.87% in February 2009 and 6.02% in December 2008,
between the minimum rate for one-week tenders (3.7500%) and the repo rate (4.7500%).
Weighted average weekly interest rates ranged between 3.8068% and 4.7490% against a range of 4.4986% to
4.7435% the previous quarter.
2nd quarter 2009
The economic and financial situation of the Union during the second quarter of 2009 was marked by the
deterioration of growth prospects and the appearance of tensions on public finance, in a context of reduced
inflationist pressure and slower growth in outstanding credits to the economy.
In this context, the BCEAO lowered its leading rates by 0.50 percentage point. Thus, as of 16 June 2009, the
repo rate was reduced from 4.75% to 4.25% and the discount rate, which serves as a reference for penalties,
from 6.75% to 6.25%. The drop in the Central Bank’s leading rates should allow the banks to reduce their
lending rates.
Furthermore, with a view to reinforcing the signal sent to the market by reducing the leading rates and
increasing the banks’ capacity to finance the economy, the BCEAO lowered its required reserve ratios in four
States of the Union (Benin, Mali, Niger and Senegal). Thus, the required reserve ratios applicable to banks in
those States were set at the following levels as of Tuesday 16 June 2009:
120
Benin: 9.0% instead of 15.0%;
Mali: 7.0% instead of 9.0%;
Niger: 7.0% instead of 9.0%;
Senegal: 7.0% instead of 9.0%.
The required reserve ratios remain unchanged in Burkina (7.0%), Côte d'Ivoire (5.0%), Guinea-Bissau
(3.0%) and Togo (3.0%).
WAMU member States.
The BCEAO continued its weekly and monthly operations to cover the liquidity needs of the banks. These
actions contributed to reducing the one-week interbank market rates. The average one-week interbank
market rate stood at 4.37% in June 2009, against 4.63% in May 2009 and 4.71% in March 2009. Over the
last two weeks in June, following the Central Bank decision, the average interbank rate for that maturity
stood at 4.14%, below the new repo rate.
Weighted average weekly interest rates ranged between 3.5653% and 3.9923%, against a range of 3.8068%
to 4.7490% the previous quarter.
3rd quarter 2009
During the third quarter of 2009, the BCEAO maintained its leading rates unchanged in relation to the
positive trend in inflation. The BCEAO pursued an accommodating policy with a view to supporting economic
recovery in the countries of the Union, on the heels of a trend launched in industrialised countries. The repo
rate and the discount rate remained unchanged at 4.25% and 6.25%, their levels since 16 June 2009.
Through its weekly and monthly operations, the BCEAO continued coverage of the liquidity needs of the
banks. The reduction of the leading rates and regular liquidity injections contributed to bringing down the
one-week interbank market rate, which was 4.09% in September 2009, below the repo rate, against 4.37% in
June 2009 and 4.63% in May 2009.
During the third quarter of 2009, the amounts put up for adjudication through the weekly bidding window
were adjusted to cover needs expressed by credit institutions. Weighted average weekly interest rates
ranged between 3.2662% and 3.3646%, against a range of 3.5653% to 3.9923% the previous quarter.
Furthermore, the issuing institution maintained adjudications at fixed rates for unlimited amounts at the onemonth window, in order to reassure credit institutions as to the willingness of the Central Bank to help them
finance the economy in a time marked by reduced inflationist tensions.
4th quarter 2009
During the fourth quarter of 2009, the BCEAO left its leading rates unchanged in connection with the positive
trend in inflation. The repo rate and the discount rate remained at the same levels since 16 June 2009,
respectively 4.25% and 6.25%.
121
The BCEAO continued its interventions on the money market through its weekly and monthly operations,
with a view to satisfying the banks’ liquidity needs.
The upward adjustment, in the final quarter of 2009, of the amounts put up for adjudication in the framework
of the weekly liquidity injection tendering operations of the BCEAO, contributed to the continued relaxing of
one-week interbank rates, which stood at 3.87% in December 2009, against respectively 4.09% and 4.37%
in September and June 2009. Weighted average weekly interest rates ranged between 3.2584% and
3.3149%, against a range of 3.5653% to 3.9923% the previous quarter.
Furthermore, adjudications at a fixed rate of 3.65% for unlimited amounts through the one-month window
were organised on a regular basis, with a view to ensuring coverage of the longer-maturity needs of the
banks, in a context of reduced inflationist tension.
1st quarter 2010
During the first quarter of 2010, the BCEAO left its leading rates unchanged in connection with the positive trend
in inflation. The repo rate and the discount rate remained at the same levels since 16 June 2009, respectively
4.25% and 6.25%.
During the quarter, monetary policy implementation was marked by the continuation of BCEAO interventions
on the money market. The Central Bank organised twelve weekly cash injection operations.
The amounts put up by the BCEAO through the window of weekly tenders for the injection of liquidities were
maintained at a high level during the first quarter of 2010, thereby contributing to continued overall relaxing of
one-week interbank rates, a trend that began at the start of the fourth quarter of 2009. One-week interbank
rates stood at 3.33% in March 2010, against 3.52% in January 2010 and 3.87% in December 2009. The
weighted average weekly interest rates on the money market ranged between 3.2544% and 3.2933%,
against a range of 3.2584% to 3.3149% the previous quarter.
In addition, the BCEAO continued to organise adjudications at a fixed rate of 3.65% for unlimited amounts
through the one-month tenders window, with a view to covering the longer maturity needs of the banks, in a
context marked by easing of inflationist tensions.
No change was made to the required reserves mechanism applicable to the banks of the Union during the
quarter under review.
2nd quarter 2010
Over the second quarter of 2010, the BCEAO continued to cover the liquidity needs of the banks through its
weekly and monthly operations.
The lowering of the amounts put up by the BCEAO through the weekly tenders window for the injection of
liquidities during the second quarter of 2010, with a view to adjusting them to the level of needs expressed by
the banks, caused a slight rise in the weighted average rate for one-week tenders and the one-week
interbank rates.
122
The weighted average rate for one-week cash injection tenders stood at 3.2942% against 3.2629% one
quarter previously. It ranged between 3.2571% and 3.3665% during the second quarter of 2010, against a
range of 3.2544% and 3.2933% the previous quarter. Following the same trend, one-week interbank rates
reached 3.70% in the second quarter of 2010, against 3.40% the previous quarter.
14 September 2010
The Monetary Policy Committee held its first meeting on 14 September 2010. After reviewing the recent
economic, financial and monetary situation in WAEMU, taking account of a context characterised by the
absence of any major risks to price stability, the Committee decided to maintain the status quo in terms of the
leading rates of the BCEAO. Thus the minimum bid rate for open market transactions and the repo rate
respectively remained steady at 3.25% and 4.25%.
The ability of the banks to constitute their required reserves was generally satisfactory and the relative
abundance of bank liquidity was not expected to give rise to any inflationist tensions. Accordingly, the
Monetary Policy Committee decided to maintain reserve requirements at their current level. Thus, the
required reserve ratios applicable to the banks remained at 7.0% in Benin, Burkina Faso, Mali, Niger and
Senegal and 5.0% in Côte d'Ivoire, Guinea-Bissau and Togo.
1 December 2010
The Monetary Policy Committee of the BCEAO held its ordinary meeting on 1 December 2010. After
analysing the recent economic, financial and monetary situation in WAEMU, in a context characterised by a
low level of inflationist pressure, the Monetary Policy Committee decided to maintain the status quo in terms
of the leading rates of the BCEAO. Thus, the minimum bid rate for open market transactions and the repo
rate respectively remained steady at 3.25% and 4.25%.
In addition, the capacity to constitute their required reserves was generally satisfactory and the relative
abundance of bank liquidity was not expected to give rise to any inflationist tensions. With a view to
harmonising the reserve requirements applicable to member State banks, the Monetary Policy Committee
decided to standardise all rates. To achieve this, a decision was made to set the Union’s required reserve
ratios at a uniform level of 7% in all countries as of 16 December 2010.
2 March 2011
The Monetary Policy Committee of the BCEAO held its ordinary meeting on 2 March 2011. After reviewing
the recent economic, financial and monetary situation in WAEMU, in the light of the impact of the political
crisis in Côte d’Ivoire and the resurgence of inflationist pressures owing to higher prices for imported staple
foods and rising fuel prices in most of the states of the Union, the Monetary Policy Committee decided to
maintain the leading rates of the BCEAO at their previous level. Thus, the minimum bid rate for open market
transactions and the rate for transactions through the marginal lending window respectively remained steady
at 3.25% and 4.25%.
Furthermore, the Monetary Policy Committee decided to maintain the required reserve ratio at the 7.0% level
in force since 16 December 2010.
123
1 June 2011
The Monetary Policy Committee of the Central Bank of West African States (BCEAO) held its ordinary
meeting on 1 June 2011.
After reviewing the recent economic, financial and monetary situation in WAEMU, the Monetary Policy
Committee noted that the end of the political crisis in Côte d'Ivoire was a harbinger of a bright economic
outlook for the Union. It pointed out, however, that inflation remained at a relatively high level since early
2011. The year over year inflation rate stood at 3.7% at the end of March 2011, after reaching 3.9% at the
end of December 2010.
After analysing the other short-term indicators in WAMU, the Monetary Policy Committee noted that
economic activity had continued to be weak in the early months of FY 2011, due in particular to the negative
impact of the political crisis in Côte d'Ivoire and the poor performance of the industrial sector. The Committee
observed, however, that the stability and security of the Union’s financial system had been preserved,
despite the risks entailed by the impact of the Ivorian crisis on the banking system.
The Committee recommended that banks in the Union should pay close attention to the quality of their
portfolios and pass on the current easing of interest rates on the money market in terms of both the volume
and cost of credit. It pointed out that, over the short term, price hikes were not expected to slow down
significantly in the Union, in light of expectations that oil prices would remain high and that the price of
imported staple foods would continue to rise. The inflation rate was expected to stand at 3.9% at the end of
June 2011. However, inflation forecasts over the medium term were in line with the goal of price stability in
the Union.
Based on the foregoing analyses, the Monetary Policy Committee decided to maintain the BCEAO leading
rates at their previous levels. Thus, the minimum bid rate for open market transactions and the rate for
transactions through the marginal lending window respectively remained steady at 3.25% and 4.25%.
In addition, the Monetary Policy Committee decided to maintain the required reserve ratio at the 7.0% level in
force since 16 December 2010.
7 September 2011
The BCEAO’s Monetary Policy Committee (MPC) held its ordinary meeting on 7 September 2011. During the
meeting, the Committee reviewed the recent economic, financial and monetary situation in the West African
Monetary Union, particularly the risks in terms of price stability and the outlook for economic growth in the
Union. In this regard, the Committee noted a trend towards a slowdown in the rate of price increases. The
year over year inflation rate dropped from 5.7% at the end of April 2011 to 4.8% at the end of May 2011 and
3.9% at the end of June 2011. This trend was due to the re-establishment of distribution circuits in Côte
d'Ivoire and a drop in imported inflation.
After analysing the other short-term indicators in WAMU, the Monetary Policy Committee noted that
economic activity had continued to be weak in the second quarter of FY 2011, due to the poor performance
of the industrial and tertiary sectors.
124
Monetary conditions appeared to be favourable overall, with relatively abundant bank liquidity, near stability in
rates on the money market and an easing of bank lending rates. However, the average weighted rates on
issues of treasury bills rose over the quarter.
The Committee felt that the prospects of economic growth in the Union remained tinged with uncertainty. The
economic growth rate was forecast at 5.3% in 2012, against 1.0% in 2011, in keeping with the appeasement of
the socio-political situation in all countries of the Union.
Based on the foregoing analyses, the Monetary Policy Committee decided to maintain the BCEAO’s leading
rates at their previous levels. Thus, the minimum bid rate for open market transactions and the rate for
transactions through the marginal lending window respectively remained steady at 3.25% and 4.25%. In
addition, the Monetary Policy Committee decided to maintain the required reserve ratio at the 7.0% level in
force since 16 December 2010.
7 December 2011
The BCEAO’s Monetary Policy Committee held its ordinary meeting on 7 December 2011. During the meeting,
the Committee reviewed the recent economic, financial and monetary situation in the West African Monetary
Union (WAMU). It particularly examined the risks in terms of price stability and economic growth prospects in
the Union. With regard to inflation, the Committee noted that the trend towards a slowdown in price increases,
visible since the month of May 2011, had faded in September. Indeed, the year over year inflation rate had
dropped from 4.8% in May to 3.9% at the end of June 2011, then 3.6% at the end of July 2011 and 3.5% at the
end of August 2011, but it rose to 3.8% at the end of September 2011. Price hikes continued to be influenced
by year over year increases in food and fuel prices.
An analysis of short-term indicators in WAMU showed stronger economic activity in the third quarter of FY
2011, particularly in industry and the tertiary sector.
Monetary conditions remained favourable overall, in a context of abundant bank liquidity and an easing of
money market rates. However, in the third quarter of 2011, bank lending rates and average weighted rates on
issues of treasury bills were up compared to the previous quarter.
Reviewing economic growth prospects in the Union, the Committee felt that the economy would continue to do
well, although it faced some uncertainty in light of the recent international situation. The rate of growth in the
real GDP was projected at 6.4% in 2012 compared to 1.2% in 2011 and 4.3% in 2010.
Based on the foregoing analyses, the Monetary Policy Committee decided to maintain BCEAO leading rates at
their previous level. Thus, the minimum bid rate for open market transactions and the rate for transactions through
the marginal lending window respectively remained steady at 3.25% and 4.25%. In addition, the Monetary Policy
Committee decided to maintain the required reserve ratio at the 7.0% level in force since 16 December 2010.
7 March 2012
The Monetary Policy Committee of the BCEAO held its ordinary meeting on 7 March 2011. After reviewing
the economic situation, the Monetary Policy Committee pointed out that, in 2012, the WAEMU member
States would continue to operate in an unfavourable international environment, marked by a slowdown in
global growth. The situation in the Union would also likely be affected by the poor 2011/2012 crop year. The
Monetary Policy Committee noted that these factors cast doubt over the performance of the growth forecasts
for FY 2012, which could turn out to be lower than the rate of 6.4% initially forecast.
125
The analysis of monetary conditions showed that bank liquidity had fallen significantly since the second half
of 2011. Other than cyclical factors, the trend was caused by structural changes in the economies of the
Union, leading to significant import financing needs to realise current private and public investments. This
situation caused tension on money market interest rates. The outlook was that the demand for bank liquidity
was likely to remain high, in light of the resources required to cover the financing needs expressed by the
States for FY 2012.
Based on the foregoing analyses, the Monetary Policy Committee decided to maintain the leading rates of
the BCEAO at their current levels. Thus, the minimum interest rate for bidding on calls for tenders and the
marginal lending rate respectively remained at 3.25% and 4.25%.
Furthermore, with a view to easing bank liquidity constraints and consolidating the conditions for appropriate
financing of the economy, the Monetary Policy Committee decided to reduce the required reserve coefficient
to 5.0% for all of the banks in the countries of the Union, a decrease of two (2) percentage points, effective
16 March 2012.
11 June 2012
The Monetary Policy Committee of the Central Bank of West African States (BCEAO) held its ordinary
meeting on 11 June 2012. The Committee reviewed the economic, monetary and financial situation in the
West African Monetary Union (WAMU) in the light of recent trends in the international situation. It particularly
analysed the risk factors that could affect price stability and the outlook for economic growth in the Union.
The Committee observed a slowdown in the rate of increase of overall consumer price levels in the Union in
recent times, thanks to the measures implemented nationally and regionally to fight against the high cost of
living and offset the impact of supply shocks. Thus, the rate of inflation rose from 2.3% year over year at the
end of January 2012 to 2.8% at the end of February 2012, but fell to 2.5% at the end of March 2012 and
0.6% in April 2012.
Based on their analysis of the situation, the members of the Monetary Policy Committee noted that economic
growth in the Union in FY 2012 would be better than in 2011 due to rapid economic recovery in Côte d’Ivoire,
dynamic mining sector performance and continued public investments in infrastructure. However, concerns
existed in light of the impact of the socio-political crises in Mali and Guinea-Bissau as well as uncertainties
arising from the international environment.
In view of these uncertainties, and based on its assessment of the balance of risks, the Monetary Policy
Committee decided to lower the leading interest rates of the BCEAO by 25 basis points. The BCEAO’s
minimum interest rate for bidding operations to inject liquidity and its marginal lending window interest rate
were therefore established respectively at 3.00% and 4.00% effective 16 June 2012.
On the money market, the Committee observed that the tensions that justified the lowering of the required
reserve coefficient in March 2012 had begun to ease. The weighted average rate for the one-week interbank
compartment, which stood at 4.67% in March 2012, had fallen to 4.25% in May 2012. The Committee
therefore decided to maintain the required reserve coefficient applicable to banks at the level of 5%, in force
since 16 March 2012.
126
5 September 2012
The Monetary Policy Committee of the BCEAO held its ordinary meeting on 5 September 2012. The
Committee examined the economic, financial and monetary situation in the West African Monetary Union
(WAMU) in the light of recent trends in the international situation. In particular, it analysed the risk factors that
could affect price stability and economic growth prospects in the Union.
The Committee observed a continuing trend to moderation of inflationist tensions in WAMU. The inflation rate
stood at 1.5%, year over year, in the second quarter of 2012 after 2.5% the previous quarter. According to
the medium-term outlook, the inflation rate was expected to be in the area of 2.3%, year over year, over the
medium term, assuming a normal 2012/2013 growing year.
Based on their analysis of the economic situation, the members of the Monetary Policy Committee pointed
out that the available cyclical indicators confirmed a slowdown in global economic growth in 2012, in a
context of tensions on the international financial markets. The available forecasts predicted a growth rate of
5.3% in the Union in 2012.
As for the money market, the Committee observed that the drop of 25 basis points in the leading rates of the
BCEAO, which took place on 16 June 2012, had had an impact on money market rates. The interest rates in
the one-week compartment of the interbank market were down, sliding from an average of 4.67% in March
2012 to 4.03% in July 2012. An easing of the interest rates on Treasury bill issues was also observed. The
weighted average rates on twelve-month Treasury bill issues dropped from 6.26% in the second quarter of
2012 to 5.76% in July 2012.
Based on these analyses, the Monetary Policy Committee decided to maintain the leading rates at their
current levels. The minimum interest rate for bidding on calls for tenders and the marginal lending rate
respectively remained at 3.00% and 4.00%. The Committee also decided to maintain the required reserve
coefficient applicable to the banks at its level of 5.0%, in force since 16 March 2012.
7 December 2012
The BCEAO Monetary Policy Committee held its fourth ordinary meeting on 7 December 2012. The
Committee examined the economic, financial and monetary situation in the West African Monetary Union
(WAMU) in the light of recent trends in the international situation.
After analysing the trend in inflation, the Committee noted a slight rise in the harmonised consumer price
index in the third quarter of 2012. Year over year, the inflation rate rose from 2.1% in June to 2.7% at the end
of September 2012, due to the upward adjustment of fuel prices in certain member States and the rise in
prices of local cereals and fisheries products. Inflation was expected to slow down in the fourth quarter of
2012 to reach 2.5% by the end of December. As an annual average, the inflation rate was expected to stand
at 2.3% in 2012 against 3.8% in 2011. On the 24-month horizon, the rate is projected to stand at 2.4%.
After analysing the trend in short-term indicators, the Committee pointed out that economic activity in WAMU
continued to rally, especially in the secondary and tertiary sectors. The Committee estimated that economic
growth performances would be better than forecast. The latest estimates predicted 5.8% growth in the gross
domestic product of the Union in 2012, an upward adjustment of 0.5 percentage point compared to forecasts
three months earlier. For FY 2013, economic growth was expected to increase to 6.5%.
127
Money market interest rates continued to ease. The weighted average rate for one-week interbank
transactions averaged 4.13% over the third quarter against 4.24% during the second quarter of 2012. The
weighted average rate for Treasury bill issues was 5.63% during the third quarter compared to 5.72% the
quarter before.
Based on these analyses, the Monetary Policy Committee decided to maintain leading rates unchanged at their
current levels. The minimum interest rate for bidding on calls for tenders for injection of liquidities and the
marginal lending rate respectively remained at 3.00% and 4.00%. The Committee also decided to maintain the
required reserve coefficient applicable to the banks at its level of 5%, in force since 16 March 2012.
128
Principal documents published by the Central Bank of West African States
Periodicals
1 - BCEAO annual report - from 1956 to 2012 - (annual)
2 - Memos and Statistics - from 1956 to 2004
- Monetary statistics (monthly)
- Economic statistics (quarterly)
- Studies and research (quarterly)
- General information (quarterly)
3 - Monthly economic newsletter - from October 2005 to December 2012
4 - Monthly statistical, monetary and financial news - from January 2005 to December 2012
5 - Quarterly economic memo - from June 2010 to December 2012
6 - Quarterly information memo - from March 2005 to December 2012
7 - Statistical directory - from 2004 to 2011
8 - Banks and financial institutions directory - from 1967 to 2011
9 - Balance sheets and profit and loss accounts for banks and financial institutions (annual)
- Balance sheets for banks and financial institutions - from 1967 to 2003
- Balance sheets & profit and loss accounts for banks and financial institutions - 2004 to 2011
10 - Monographs on Decentralised Financial Systems - from 1993 to 2006 (annual)
11 - Economic outlooks of WAEMU member States (2006 to 2012)
12 - Review of financial stability within WAEMU (2006, 2008)
13 - Economic and Monetary Review (June 2007 to December 2012)
Books
14 - Plan Comptable Bancaire de l'UMOA (WAMU Banking Chart of Accounts) (4 volumes) - Dakar, BCEAO
Publications, August 1994
- Compilation of directives relating to recording and assessment of banking operations
- Volume I: General regulatory framework
129
- Volume II: Synthetic documents
- Volume III: Transmission of synthetic documents
15 - Compendium of legal and regulatory provisions - 2003
16 - History of the West African Monetary Union (3 volumes in French and English) - Paris, Edition Georges
Israël, January 2000
17 - Système Comptable Ouest Africain (West African Accounting System) (SYSCOA) (4 volumes)
- Company General Chart of Accounts - Paris, Edition Foucher, December 1996
- Implementation Guide - Paris, Edition Foucher, October 1997
- Minimum Cash System - Paris, Edition Foucher, October 1997
- Bridge Tables - Paris, Edition Foucher, October 1997
18 - Système Comptable Ouest Africain (SYSCOA) (West African Chart of Accounts)
-Liste intégrale des comptes et états financiers (Complete list of accounts and financial statements) Dakar, BCEAO Publications, 2005
19 - Méthodologie d'Analyse Financière (Methodology of Financial Analysis) - Dakar, BCEAO Publications,
2004
20 - Billets et pièces de monnaie dans la Zone UMOA (des origines à 2012) (WAMU Zone banknotes and
coins from inception to 2012). Dakar, BCEAO, 2012
130

2012 ANNUAL REPORT SUMMARISED VERSION Original

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Art. IV Konsultation

Solidarity statement-English

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