Regulatory Alerts2020-02-18
BCEAO Instruction No. 004-12-2019 on Monetary Policy Intervention Procedures
The Central Bank of West African States (BCEAO) issued Instruction No. 004-12-2019 to standardize its monetary policy intervention procedures across UMOA member states. The regulation mandates that BCEAO conduct liquidity operations through open market tenders, interbank transactions, and three specific refinancing windows, while requiring credit institutions to report daily interbank activities and maintain adequate collateral. It establishes precise rules for bid submission, interest rate calculations (including marginal, weighted average, and legal rates), payment default penalties, and a 35% maximum financing quota to ensure consistent monetary liquidity management.
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