• WAEMU foreign exchange reserves rose to about $33 billion by end-October 2025.
• Import cover increased to six months from 3.8 months in 2024.
• Stronger exports and renewed market access supported the recovery.

After several years under pressure, the external position of the West African Economic and Monetary Union (WAEMU) is showing clear signs of recovery. Foreign exchange reserves held by the Central Bank of West African States (BCEAO) nearly doubled year on year to about $33 billion by the end of October 2025. This level now covers six months of regional imports, up from 3.8 months in 2024.

The improvement was supported by higher export revenues, renewed access to international markets, and official disbursements by member states, Fitch said.

The buildup of reserves has gone hand in hand with a marked improvement in external accounts. Exports of cocoa beans and processed cocoa, cashew nuts, crude oil, rubber, and gold grew faster than imports, helping to reduce imbalances.

Côte d’Ivoire, WAEMU’s largest economy, made a significant contribution to the accumulation of reserves, supported by diversified exports, notably cocoa, crude oil, and gold, as well as sizable financing inflows. Fitch Ratings recently upgraded Côte d’Ivoire’s sovereign rating to “BB” with a stable outlook, citing strong growth, an improved external position, and stronger liquidity buffers that support macroeconomic resilience.

The agency expects Côte d’Ivoire’s current account deficit to narrow to about 1.7% of gross domestic product in 2025, from nearly 4.0% in 2024, and forecasts a deficit close to 1.5% of GDP in 2026 and 2027. This outlook is supported by rising exports, particularly oil and gold.

Fitch noted, however, that financial strains in Senegal pose a limited risk to WAEMU reserves and to market contagion, notably through the banking sector.

According to the agency, government securities auctions remain orderly at the regional level, and reported exposures of Ivorian banks to Senegalese debt are likely overstated due to regional intermediation mechanisms. This limits the risk of direct spillovers to bank balance sheets.

Other countries in the zone have also benefited from improved terms of trade for certain agricultural and mining products.

Fiacre E. Kakpo