The banks' own liquidity deteriorated by -361.8 billion in March 2022, according to the "Monthly Economic Outlook" of the Central Bank of West African States (BCEAO).

The note indicates that this decline is due to the negative impact of the balances of net transfers with the Exterior (-189.7 billion) as well as their operations with Treasuries and other net factors (-411.2). On the other hand, the central bank confided that the return of banknotes to bank counters (+239.1 billion) mitigated the deterioration of the structural liquidity position of banks. During the same month, UEMOA banks increased their recourse to Central Bank refinancing (+95.3 billion).

In line with these developments, the same source informs that bank liquidity experienced a decline of 266.5 billion compared to February 2022. The analysis of the constitution of required reserves during the period from February 16, 2021 to March 15, 2022 shows a surplus situation for banks in the Union compared to the level of required reserves.