(Ecofin Agency) - In the aftermath of Burkina Faso's announcement of its withdrawal from the Economic Community of West African States (ECOWAS) on January 30, 2024, President Ibrahim Traoré hinted at the possible next step being a departure from the West African CFA franc (FCFA). Subsequently, Burkina Faso had to postpone a fundraising operation on the regional market, without providing specific reasons.

Abdoulaye Diop, Mali's Minister of Foreign Affairs, and Aboubakar Nacanabo, Burkina Faso's Minister of the Economy, made separate statements, shedding light on their respective countries' positions regarding a possible exit from the monetary union. They both made it clear that neither Burkina Faso nor Mali is considering a near-term exit.

Aboubakar Nacanabo stated, "We have observed that ECOWAS is sometimes manipulated by foreign powers. We believe that this mode of operation does not align with our vision... Regarding the West African Economic and Monetary Union (WAEMU), so far, we do not have the same reproaches," as reported by Burkina's Information Agency. A few days earlier, Mali's Foreign Minister had indicated, as reported by several media outlets, that Mali intends to remain in the monetary union.

These statements aim to temper the uncertainty sparked by President Ibrahim Traoré's remarks, who, in an interview with Alain Foka, hinted that the West African Economic and Monetary Union (WAEMU) might be the next step in the "self-determination" process initiated by the three countries forming the Sahel States Alliance.

The ministers' statements come at a time when Burkina Faso had to postpone an issuance aiming to mobilize about CFA35 billion ($57.6 million) on January 31, 2024, in the WAEMU money market. An anonymous representative from the Investment Management Company acknowledged that the declarations of "self-determination" by the issuers within the Sahel Alliance are generating uncertainty among investors.

During the 2024 edition of the Public Securities Market Meetings held in Cotonou, representatives from Burkina Faso and Mali revealed their countries' plans to mobilize around CFA1,444 billion and CFA1,220 billion, respectively, on the regional capital market (through auctions and public savings calls). These suggest that a departure from the FCFA by these two countries may not be on the agenda for this year.