BCEAO maintains expansionary stance in 2025 amid strong liquidity growth in UEMOA

The Central Bank of West African States (BCEAO) adopted an expansionary monetary policy in 2025 across the West African Economic and Monetary Union (UEMOA), marked by a significant increase in liquidity injections into the banking system, according to available monetary data.

The central bank recorded a sharp rise in net liquidity operations, reflecting a continued accommodative stance aimed at supporting economic activity in the region. This policy direction contributed to a broad increase in money supply indicators throughout the year.

Among key developments, currency in circulation increased by approximately 2,791 billion CFA francs, while commercial bank deposits rose by around 3,212.3 billion CFA francs. Bank refinancing operations also expanded by about 1,080.7 billion CFA francs, indicating higher reliance on central bank liquidity support.

Overall monetary conditions in the UEMOA region reflected sustained growth in liquidity, driven by credit expansion and increased banking sector activity.

The BCEAO also reported improved financial performance, with net income estimated at 588 billion CFA francs, alongside record variations in liquidity operations during the period.

The expansionary stance comes as the region continues to support economic recovery and financing needs across member states, while maintaining monetary stability objectives within the union.

The BCEAO oversees monetary policy for eight West African countries, including Côte d’Ivoire, Senegal, and Burkina Faso, within the UEMOA framework.