Regulatory Alerts2016-11-15
BCEAO Instruction No. 025-11-2016 on the Accounting Treatment of Foreign Currency and Similar Asset Operations
The West African Central Bank (BCEAO) issues this instruction to mandate the accounting treatment of foreign currency and similar asset operations for banks and financial institutions in the UMOA region. It establishes standardized rules for recording spot, forward, and hedging operations in foreign exchange position accounts, defines liquid market criteria, and specifies valuation methods at accounting closing. Furthermore, it requires institutions to report cumulative foreign currency balances in financial statement annexes and repeals all prior conflicting provisions, with full compliance effective January 1, 2018.
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