The world's money markets were solicited in 2020 to allow governments to mobilize resources and respond to the coronavirus pandemic. That of the WAEMU has not been left out, and its member countries have carried out record operations there.

The States of the West African Economic and Monetary Union (WAEMU) mobilized in 2020, 9216.3 billion FCFA ($17 billion) on the local money market of this sub-region.

This is a record level of mobilization since 2014, according to data compiled by the Ecofin Agency. In total, these States issued 16,127 billion CFA francs of securities, as much for loans with one year and less maturity, as for longer repayment periods.

This demand found offers of 20,056 billion FCFA from investors. Until then, the largest mobilization of resources on the WAEMU money market was CFAF 3463.7 billion in 2019.

Even when we subtract covid-19 bonds and bond buybacks made by governments, the overall amount of resources mobilized on this money market is 5780 billion FCFA, and remains a record.

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

There is also a growing interest from investors involved in the process. For the first time in 8 years, they accepted returns, the average of which was 4.8% for all operations. At 124%, the overall subscription rate is lower, compared to those of 2019 and 2016. But on volume, no other year is comparable.

It remains to be seen whether this dynamic will continue during this year 2021.

Due to the coronavirus pandemic, the Central Bank of West African States (BCEAO) has taken several decisions to enable the financial sector to meet the cash flow needs of States and other economic agents. Thus, it has, among other things, increased the amount of its liquidity injections in the banking sector and reduced its intervention rates to only 2%.