The Central Bank of West African States (French: Banque Centrale des États de l'Afrique de l'Ouest, BCEAO) is a central bank serving the eight west African countries which comprise the West African Economic and Monetary Union (UEMOA):

• Benin
• Burkina Faso
• Côte d'Ivoire
• Guinea-Bissau
• Mali
• Niger
• Senegal
• Togo

The Bank is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.

History

Its predecessor, the Institut d’Emission de l’Afrique Occidentale Française et du Togo, was created in 1955 and was transformed into BCEAO in 1959.

The treaty establishing the West African Monetary Union (UMOA), signed on May 12, 1962, gave BCEAO the exclusive right to issue the currency as the common central bank for the then seven member countries:

• Côte d’Ivoire
• Dahomey
• Haute-Volta
• Mali
• Mauritania
• Niger
• Senegal

Functions

The Central Bank has the following basic tasks:

• Define and implement the monetary policy in the WAMU;
• Ensure the stability of the banking system and financial WAMU;
• Promote the smooth operation and supervision and safety of payment systems in the WAMU;
• Implement policy changes WAMU in the conditions adopted by the Council of Ministers;
• Manage the official foreign reserves of the Member States of the WAMU.

The Central Bank may conduct in respect of monetary equilibrium, assignments or projects that contribute to improving the environment for monetary policy, diversification and strengthening of the financial system WAMU and technical and professional capacities in the banking and financial sector.

Monetary Policy

Accordance with Article 8 of the Statute of the Central Bank of West African States (BCEAO), the primary objective of monetary policy of the BCEAO is to ensure price stability.

Without prejudice to this objective, the Central Bank supports the economic policies of WAEMU, for a healthy and sustainable growth.

The current system of managing money and credit is based on market mechanisms and instruments of indirect regulation of liquidity, including interest rates and the reserve requirement system.

Policy interest rates, implemented in the context of ATM refinancing the central bank aims steering short-term interest rates on the money market. This rate control is ensured through the implementation of open market operations and refinancing on the marginal lending window allows the central bank to seek to achieve the objective of price stability. The minimum interest rate of submission to the open market operations (tenders) and the applicable rate of particular interests on the marginal lending office (repo rate), whose levels are currently set by the Committee Monetary Policy, respectively 3.25% and 4.25%, are the two main rates from the BCEAO.

The device reserve requirements allows the BCEAO collapse or expand distribution capacity credit of the banking system. Thus, all banks and financial institutions credit distributors, authorized to receive deposits from the public and finance institutions credit sales are subject to minimum reserves with the Central Bank. The device reserves used by the BCEAO as an instrument to strengthen the effectiveness of the policy interest rate.

Organization and Structure

The direction of the Central Bank is insured by the Governor.

The Governor chairs the Monetary Policy Committee and the Board of Directors. It prepares and implements the decisions of these bodies which convenes meetings.

It may be attending meetings of the organs of the Central Bank by the staff which it considers necessary assistance.

The Governor of the Central Bank is appointed by the Assembly of Heads of State and Government of the WAMU for a period of six years, renewable.

Vice-Governors are appointed by the Council of Ministers of the WAMU for a period of five years, renewable.

The Governor and the Deputy Governors shall be chosen successively to call these functions one national of each Member State of the WAMU.

Their mandate is irrevocable, except in cases of gross misconduct or incapacity.

In case of dismissal, death or resignation of Governor or Deputy Governors, the person appointed replacement shall hold office for the remaining term of office of one it replaces.

The Audit Committee is responsible for assessing the quality of the administration, operation, financial reporting and control system of the Bank Central.

The Audit Committee consists of four members. It includes: Director of the BCEAO, a national of Member State holding the Presidency of the Council of Ministers of WAMU three Directors of the BCEAO, nationals of other Member States of the WAEMU.

The Monetary Policy Committee is responsible for setting monetary policy in the WAMU and its instruments, in accordance with the Statutes.

The Monetary Policy Committee includes:

• The Governor of the Central Bank;
• Vice-Governors of the Central Bank;
• One member nominated by each of the Governments of the Member States of the WAEMU and appointed by the Council of Ministers;
• One member appointed by the State to ensure the guarantee of convertibility of the currency;
• Four other members who are nationals of Member States of the WAEMU, appointed in a personal by the Council of Ministers.

The Board of Directors is responsible for matters relating to the management of the Central Bank, in accordance with the Statutes.

The Board of Directors includes:

• The Governor of the Central Bank;
• One member appointed by each of the Governments of the Member States of the WAEMU;
• One member appointed by the State to ensure the guarantee of convertibility of the currency.

Useful links

Currency of West African States:

CFA Franc BCEAO

List of Central Banks:

Central Banks

Official website of Central Bank of West African States:

www.bceao.int

Banking and Financial System:

www.bceao.int