• BCEAO’s gold assets jumped 38% in 2024 to CFA2530 billion ($4.37 billion)

• Over 90% of the reserves are held abroad, mostly at the Banque de France

• Critics question the centralization of West Africa’s gold reserves in Europe

In 2024, the Central Bank of West African States (BCEAO) saw the value of its gold reserves climb past CFA2530 billion ($4.37 billion), up from CFA1831 billion the previous year. This 38% increase came mainly from the surge in gold prices, with the price per ounce rising from CFA1.2 million to CFA1.66 million. Meanwhile, the volume of gold held stayed nearly the same at about 1.52 million ounces.

But where exactly is all this gold kept?

Official data show that only 120,000 ounces are physically stored at the BCEAO’s headquarters, which is less than 8% of the total. Most of the reserves are held by major international institutions.

The largest share more than one million ounces is deposited at the Banque de France. This represents a value of CFA1756 billion, or close to 70% of BCEAO’s entire gold stock.

In 2024 alone, the gold stored in France generated a latent gain of CFA485.6 billion for the BCEAO, without any gold actually being sold. This unrealized gain accounted for a large part of the CFA700 billion increase in the central bank’s total gold valuation during the year. It strengthened the bank’s capital base without inflating its net profit.

"The BCEAO’s gold is mostly stored in the Banque de France’s vaults, known for their high security standards. This arrangement dates back to the early days of the West African monetary system and still plays a key role today. It boosts the Union’s credibility on global markets and reassures financial partners about the safety and traceability of its reserves," explained a West African economist.

"The Banque de France values these reserves at market prices. They also help guarantee the unlimited convertibility of the CFA franc into the euro, a cornerstone of WAEMU’s fixed exchange rate system," the economist added.

However, this heavy concentration of reserves in Paris continues to draw criticism. Pan-Africanist groups and some economists argue that it is a lingering sign of post-colonial dependency. The fact that more than one million ounces of West Africa’s gold are still kept outside the continent fuels ongoing debates about the real monetary sovereignty of WAEMU’s eight member states.

Recent reforms — such as changes to the operations account and to France’s role in the BCEAO’s governance — have not fully calmed concerns. Many believe they do not go far enough. Senegalese Prime Minister Ousmane Sonko even warned this month that his country could move away from the shared currency if deeper reforms are not made quickly.

The Banque de France is not the only institution holding BCEAO’s gold. The Bank for International Settlements (BIS) also stores nearly 106,000 ounces, valued at CFA176.4 billion. However, the amount of gold kept at the BIS dropped in 2024. Part of it was redeployed into gold investment operations as part of the BCEAO’s new active management strategy launched in 2023.

By the end of 2024, about 200,000 ounces had been engaged in these placements to seek better returns from an asset that had long been kept idle. Gold placements contributed CFA37 billion to the bank’s accounting revaluation for the year.