BCEAO

The Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO) is the joint issuing bank of the eight (8) member states of the Union Monétaire Ouest Africaine (UMOA).

The Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO) is an international public institution headquartered in Dakar, Senegal. It is the joint issuing bank of the member states of the West African Monetary Union (UMOA). When it was created on May 12, 1962, it brought together the Republics of Côte d’Ivoire, Dahomey, Upper Volta, Mali, Niger, Mauritania, Senegal and Togo.

The eight (8) WAMU member states are: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.

What the BCEAO does in concrete terms:

Issue currency:
The BCEAO enjoys the exclusive privilege of issuing currency in all member states of the West African Monetary Union. It issues monetary signs, banknotes and coins, which are legal tender in all member states of the Union. The creation, issue and cancellation of monetary signs are decided by the Council of Ministers.
Notwithstanding the development of cashless means of payment, the use of banknotes and coins continues to occupy a relatively important place in the transactions of economic agents. The movement of banknotes between countries is facilitated by the uniqueness of monetary signs. In the field of printing, the Central Bank carries out ongoing research into the authentication of monetary signs, with a view to reinforcing the security of the bills it issues.

Monetary policy management:
The Central Bank’s management of the monetary policy of the member states of the Union consists in adjusting the overall liquidity of the economy in line with economic trends, in order to ensure price stability on the one hand, and promote economic growth on the other.
Organization and supervision of banking activities:
The Central Bank defines the regulations applicable to banks and financial institutions, and supervises them. Within this framework, the WAMU Banking Commission, created on April 24 1990 and chaired by the Governor of the BCEAO, is responsible for overseeing the organization and supervision of the banking system in the WAMU. BCEAO provides the General Secretariat of the Banking Commission.

Assistance to member states:
The Central Bank assists, at their request, the Governments of the Member States of the Union in their relations with international financial and monetary institutions, and in the negotiations they undertake with a view to concluding international financial agreements.
It may be entrusted with the execution of such agreements under the conditions laid down in agreements approved by the Board of Directors.
In particular, with regard to the relations of States with the International Monetary Fund, the Central Bank acts as financial agent, in accordance with the provisions of the Convention of September 24, 1981, signed between it and the member States.
The Institut d’émission also assists governments in defining and monitoring the implementation of adjustment programs, and in debt management.
In particular, it assists governments in rescheduling their foreign debt. The Institut d’émission also assists in the design, harmonization and application of texts relating to the regulation of external financial relations. In this context, it draws up the balance of payments on behalf of governments.