Member states of the West African Economic and Monetary Union mobilized a total of CFA9.2163 trillion ($17 billion) on the regional money market last year.

This is a record mobilization since 2014, according to data compiled by Ecofin Agency. In total, WAEMU States issued CFA1.6127 trillion worth of securities, both for loans with maturities of one year or less and for longer repayment terms.

The operation was subscribed at CFA20,056 billion by investors. Before this issue, the largest mobilization on the WAEMU money market was CFA3463.7 billion in 2019. Even when covid-19 bonds and bond repurchases by governments are excluded, the overall amount mobilized on the market in 2020 was CFA5,780 billion, still a record.

This performance is proof that the WAEMU money market is maturing. The process that started timidly has almost become a mechanism normally expected by all the actors concerned.

There is also a growing interest among investors participating in the process. For the first time in 8 years, they have accepted returns averaging 4.8% for all operations. At 124%, the overall subscription rate is lower than in 2019 and 2016. However, in terms of volume, no other year is comparable. Actors on the market hope this impetus will continue this year.

Due to the Covid-19 pandemic, the Central Bank of West African States has taken some measures to help the financial sector better meet the cash needs of states and other economic operators. Under this plan, the bank has increased its liquidity injections and dropped its intervention rate by only 2%.

Idriss Linge