BCEAO

CENTRAL BANK OF WEST AFRICAN STATES

INSTRUCTION NO. 004/03/2011 ON THE ORGANIZATION OF THE SECONDARY MARKET FOR BCEAO BILLS

The Governor of the Central Bank of West African States (BCEAO), Having regard to the Treaty of the West African Monetary Union (UMOA), dated January 20, 2007, particularly Article 34 thereof, Having regard to the Statutes of the Central Bank of West African States (BCEAO), annexed to the Treaty of the West African Monetary Union, dated January 20, 2007, particularly Article 62 thereof, Having regard to Decision No. 397/12/2010 of December 2, 2010 by the Monetary Policy Committee establishing rules, instruments and procedures for implementing BCEAO monetary and credit policy, particularly Article 10 thereof,

DECIDES

Article 1: Purpose This instruction aims to specify the practical arrangements for organizing the secondary market for BCEAO bills.

Article 2: Settlement – Delivery of Securities on the Secondary Market Eligible participants in monetary policy operations as resource providers and all establishments authorized by the Central Bank are authorized to place or negotiate BCEAO bills among themselves. The Central Bank ensures the clearing of operations on BCEAO bills on the secondary market between concerned participants holding a current or settlement account and a dedicated securities account in its books.

Article 3: Clearing of Operations on BCEAO Bills Clearing is organized based on a double notification, with simultaneous settlement of securities delivery and cash payment. To this end, each contracting party sends a notification to the Central Bank, specifying for each operation the main characteristics below:

• the identity of the transferor and the numbers of its current or settlement account and securities account;

2

• the identity of the transferee and the numbers of its current or settlement account and securities account;
• the number of bills and references to the relevant issuance;
• the net amount to be settled;
• the value date of the operation, set at a maximum of j + 3 (where j corresponds to the transaction date).

If both notifications are identical, clearing is definitively executed on the agreed value date. In case of discrepancy between elements provided by the two parties, the Central Bank suspends the operation and notifies them for correction. The Central Bank ensures the existence of sufficient funds for the transferee before executing requested clearings. Notifications are transmitted at the participants' choice, by fax, mail, within an automated settlement-and-delivery system for securities, or by any other fast and secure means.

Article 4: Information Related to Operations on the Secondary Market Eligible participants are required to inform the Central Bank of operations carried out on BCEAO bills, according to the following periodicities. On the last business day of each week, authorized intermediaries communicate the total volume as well as the average rate or average price of transactions executed for purchases and sales. These information are disseminated by the BCEAO to the banking system in a synthetic form. On the last business day of each month, authorized intermediaries communicate the outstanding amount of BCEAO bills they hold.

Article 5: Entry into Force This instruction repeals and replaces all prior provisions dealing with the same subject matter. It enters into force as of its signature date and is published wherever necessary.

Done in Dakar, on MARCH 18, 2011 Acting Governor (Signature) Jean-Baptiste COMPAORE

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BCEAO

CENTRAL BANK OF WEST AFRICAN STATES

INSTRUCTION NO. 005/03/2011 ON THE COMMUNICATION OF AUTONOMOUS FACTORS OF BANK LIQUIDITY BY CREDIT INSTITUTIONS OF THE UMOA

The Governor of the Central Bank of West African States (BCEAO), Having regard to the Treaty of the West African Monetary Union (UMOA), dated January 20, 2007, particularly Article 34 thereof, Having regard to the Statutes of the Central Bank of West African States (BCEAO), annexed to the Treaty of the West African Monetary Union, dated January 20, 2007, particularly Article 62 thereof, Having regard to the Uniform Law on Banking Regulation, particularly Article 56 thereof, Having regard to Decision No. 397/12/2010 of December 2, 2010 by the Monetary Policy Committee establishing rules, instruments and procedures for implementing BCEAO monetary and credit policy, particularly Title I thereof,

DECIDES

Article 1: Purpose This instruction aims to specify the arrangements for communicating to the Central Bank of West African States (BCEAO), by credit institutions of the West African Monetary Union (UMOA), data related to autonomous factors of bank liquidity.

Article 2: Nature of Information to be Provided Credit institutions communicate to the Central Bank, on a weekly basis, using the form attached as an annex to this instruction, the actual values and forecasted changes of their liquidity autonomous factors. These relate to data concerning operations with the Public Treasury, operations on banknotes and coins with customers at their counters, operations with foreign entities via the Central Bank, and bills in collection at the BCEAO.

Article 3: Communication Deadlines The actual values and forecasted changes of autonomous liquidity factors are transmitted to the Central Bank by the deadline set for submitting bids in the weekly auction. Forecasts cover the weekly period starting from their communication date to the Central Bank. Actual values of autonomous factors of bank liquidity are communicated for the preceding weekly period.

Article 4: Entry into Force This instruction, including its annex which forms an integral part thereof, repeals and replaces all prior provisions dealing with the same subject matter. It enters into force as of its signature date and is published wherever necessary.

Done in Dakar, on MARCH 18, 2011 Acting Governor (Signature) Jean-Baptiste COMPAORE

--- 3 ANNEX (Form to be completed at the letterhead of the declaring credit institution)

FORECASTED VARIATION OF AUTONOMOUS FACTORS OF BANK LIQUIDITY

Registration Number: .................... Period from .... to .................... 20..

MM 830- IBC (in millions of FCFA)

Change in autonomous factors relative to the previous period	Actual movements during the previous period	Forecasted movements during the reviewed period
1 – Operations on banknotes and coins in FCFA
- Customer deposits (+)
- Customer withdrawals (-)
2 – Operations with foreign entities (UMOA and non-UMOA)
- Outgoing transfers (-) via BCEAO
- Incoming transfers (+) via BCEAO
- Manual exchange (foreign currency against FCFA or vice versa) (+)
3 – Operations with the Treasury
- Acquisition of government securities (-)
- Transfer or amortization of government securities (+)
- Advances to the Public Treasury (granting and repayment) (+)
- Deposits by the Public Treasury (creditor and debtor movements) (+)
4 – Collection of bills at the BCEAO (+)
Total

In ...................., on .................... 20.. Authorized Signature