BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

Why predicting the future is more uncertain today than ever | France

The uncertainties about 2020 growth are so great that the Banque de France and INSEE preferred to postpone the publication of their forecasts. France will plunge into recession in 2020. All the experts agree on this point. On the other hand, there is still a great deal of uncertainty about the extent of the decline in GDP. In its amending finance bill for 2020, the government had to decide. And, as tradition dictates, rather with optimism - determination, a politician would say. Based on the dual hypothesis of confinement limited to one month and a rapid return to normal of French demand, Bercy thus forecasts a limited recession of ... 1%.
 
Future of Economy is not predictable for CoronaVirus

Large institutions (IMF, OECD ...) are waiting for their part to see more clearly about the evolution of the health crisis to turn, in turn, their econometric models. Despite the many unknowns, some economists or private business institutions have risked the game of forecasting. And the result of their work is not encouraging: they all display projections that are considerably darker than the French state.

Patrick Artus of Natixis thus advanced on a fall in GDP of around 2%. At Morgan Stanley, the recession is estimated at -4.8%. As for the director of the Toulouse School of Economics, Christian Gollier, he indicated, in an interview with L’Obs, that he envisaged a fall in GDP from 10% to ... 20%. A survey by BFM Business of forecasters also calls into question government forecasts, with a soft consensus that revolves around a decline in French GDP this year between -6% and -10%.

The divergences between all these forecasts are explained by the uncertainties surrounding the evolution of the epidemic (duration of containment measures, possible return of the Coronavirus to China, rapid discovery of a vaccine ...) but also of course the ability of the economy to recover after the shock has passed. The quality of the rebound will depend on the number of business bankruptcies recorded during the containment period and the time it takes for financial markets to return to normal, still in a tight state on Friday. The action of central banks throughout the crisis will also remain essential.

Faced with such a fog, public conjuncturists chose the path of wisdom and decided to suspend their work. "In the current context of strong uncertainties about 2020 linked to the coronavirus, the Banque de France, exceptionally, will not publish this end of quarter of annual macroeconomic forecasts", explains the institution in a press release. It postpones this publication to the end of June. INSEE also postponed the publication of its economic outlook note next week.