WAEMU: Decline of 580 billion CFA francs in net foreign assets of depository institutions : Orishas-finance

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WAEMU: Decline of 580 billion CFA francs in net foreign assets of depository institutions

22/07/2019

Source : APS

Categories: General Information

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WAEMU: Decline of 580 billion CFA francs in net foreign assets of depository institutions

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The net foreign assets (NEA) of depository institutions of the West African Economic and Monetary Union (UEMOA) fell by 580.9 billion in one year, unlike domestic claims which increased by 3,177.1 billion. or 12.0%, on an annual basis, to settle at 29,553.4 billion.

The contraction of the NEA is to be put “in connection with the deterioration of the NEA of the BCEAO (-550.5 billion)”, explains the Monthly note on the economic situation in the WAEMU countries at the end of April 2019.

It specifies that the official foreign exchange reserves of the Central Bank of West African States (BCEAO) amount to 9,040.2 billion. They are thus down 3.8% compared to April 2018.

According to the BCEAO publication, this downward trend in reserves is to be linked in particular to the “lesser mobilization of external resources by the States over the first four months
of 2019 compared to the same period of 2018 when Senegal and Côte d'Ivoire had raised 2,010.9 billion in the form of eurobonds''.

“The coverage of imports of goods and services by reserve assets thus stood at 4.9 months at the end of April 2019. The coverage rate of the monetary issue stands at 77.3% after 76.6% in
March 2019''.

On the other hand, domestic claims increased by 3,177.1 billion or 12.0%, at an annual rate, to settle at 29,553.4 billion, in line with the rise in claims on the economy and
those on central public administrations (APUC).

“The growth rate of claims on the economy stood at 9.0% against 9.8% in the same period of 2018”, notes the note on the economic situation.

According to her, “the increase in the growth rate of claims on the economy between March and April 2019 (9.0% against 8.0% in March) is justified by that of new establishment of credits. Those
latter increased, reflecting a higher level of bank overdrafts than that of March 2019''.

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