In its report on monetary policy in the WAEMU, the Bceao analysed the liquidity of EU banks. According to the document, during the first quarter of 2021, the own liquidity of WAEMU banks, defined as the cash of banks excluding refinancing of the Bceao, strengthened by 820.2 billion to -2,165.5 billion at the end of March 2021.

"This favourable development is the result of the positive impact of the balances of net transfers received from outside (+875.3 billion) as well as transactions with Treasuries and other factors (+202.7 billion). However, it was moderated by the increase of 257.8 billion in net outflows of banknotes from bank counters, "informs the Bceao. Over the same period, banks have, faced with the significant improvement in their own liquidity, reduced their requests on the Central Bank's refinancing windows by 789.8 billion. Indeed, the outstanding refinancing granted by the Bceao to banks increased from 5,793.8 billion at the end of December 2020 to 5,004.0 billion at the end of March 2021.

In line with these developments, bank liquidity increased by 30.4 billion to 2,839.6 billion at the end of March 2021 against 2,809.3 billion at the end of December 2020. On an annual basis, it consolidated by 622.3 billion, resulting from the improvement of 780.7 billion in banks' own liquidity, which led to a disengagement of 158.4 billion from bceao counters. 2021 amounted to 865.2 billion. Over the same period, the reserves built up by the banks came out, on average, at 2,457.1 billion, exceeding 1,591.9 billion the minimum regulatory level required.