Credit interest rates for term deposits of customers of banks in the West African Economic and Monetary Union (UEMOA) recorded an increase of 0.12 percentage point in June 2022 compared to the previous month, according to the results of the survey on banking conditions carried out by the Central Bank of West African States (BCEAO) .
These deposit interest rates fell from 5.13% in May 2022 to 5.25% during the period under review. As for bank lending interest rates, the BCEAO indicates near stability. Excluding charges and taxes, the borrowing rate in WAEMU stood at 6.36% in June 2022 against 6.35% in May 2022.
The West African Issuing Institute also notes that it has decided to raise its key rates by 25 basis points, in order to encourage a gradual return to inflation in the target zone, an essential condition for healthy economic growth and inclusive. Thus, the minimum bidding rate for liquidity injection tenders increased from 2.00% to 2.25% and the marginal lending window rate from 4.00% to 4.25% as of June 16, 2022.
On the regional money market, the average amount of bids retained on the weekly auction window fell from 4,438.6 billion FCFA in May 2022 to 4,257.3 billion FCFA in June 2022, a decrease of 4.1%. The weighted average rate of the said auctions came out at 2.125%. The BCEAO specifies that the auctions on this market were carried out before June 16 at the fixed rate of 2.00%, then at 2.25% after this date.
Regarding the WAEMU interbank market, it recorded an increase in the volume of trade during the month of June 2022. All maturities combined, the average weekly volume of transactions increased from 575.2 billion FCFA in May 2022 to 593, 9 billion FCFA in June 2022, an increase of 3.3%. The weighted average rate stood at 2.75% in June 2022 against 2.56% the previous month.
On the one-week market, the average volume of transactions fell by 0.3% over the month under review to stand at 373.8 billion FCFA. The average interest rate on this market rose by 18 basis points, from 2.33% in May 2022 to 2.51% in June 2022.