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 (…

Oil collapse could have far-reaching consequences

The collapse in oil prices since their peak this winter has had serious consequences, both on the financial markets and on countries. Discover them in our slideshow article. Oil prices have seen a real descent into hell lately. The reference barrel WTI even fell below 0, while the barrel of Brent returned to floors dating from ... 2001. “The oil crash is clouding the climate on the stock markets, which were already projecting towards an economic recovery, especially in United States and in several European countries, including Germany, where containment measures are beginning to be gradually lifted ”, notes Federal Finance Gestion.

After the hope of an exit from the coronavirus crisis from mid-2020, reflected by the crazy surge in Wall Street for a month (more than 30% increase since the low point of March 23) "Are worried about a longer global recession, as suggested by oil prices, whose plunge reflects much darker expectations than expected for global demand for raw materials," said the asset manager. Despite the rebound observed in recent days in oil prices, mainly linked to technical factors and an escalation of tensions between Iran and the United States, they remain negatively oriented, trending.

The sudden drop in oil prices should have many consequences on the economy and the markets, notes Frédéric Rollin, investment strategy advisor at Pictet Asset Management, who evokes among other things “a reality check” for equities, of which the recent rally could be “called into question”, a fall in oil and oil prices, the risk of closing many extraction sites, as well as a risk of turbulence for high-yield US bonds (a market made up of around 10% of companies linked to shale oil). Discover the consequences of the collapse in oil prices in this slideshow article.