41 African Central Banks Conclude Meeting in Senegal, Emphasize the Importance of Reserves to Face External Upsets
Dakar – Sudanhorizon – Agencies
The heads of 41 African central banks participated in a high-level meeting at the headquarters of the Central Bank of West African States in the Senegalese capital, Dakar, the day before on Tuesday, to discuss the challenges facing African economies and ways to coordinate between these banks in pursuit of establishing a central bank for the entire continent.
The technical committee of the Association of African Central Banks concluded its preparatory meetings during the period from (May 15 – 19), which contributed to laying the foundations for organized exchanges between stakeholders in the African financial system.
Dr. Rama Krishna Sitha, Head of the Office of the Association of African Central Banks, told the “AllAfrica” website on Wednesday this week that this new responsibility is manageable, noting in his speech: “As a former finance minister, I have always emphasized the need for sufficient reserves to face external upsets. Unfortunately, many countries operate within limited profit margins, which restricts the flexibility of their policies. Therefore, we must prioritize the replenishment of these reserves at all costs.”
For his part, the Governor of the Central Bank of Central African States, Jean-Claude Kassi Brou, affirmed the importance of this annual meeting and described it as “a timely moment for in-depth discussions on the key issues that concern us and the shared perspectives that guide our work.”
He praised the commitment of the members of the Association of African Central Banks to building an African monetary system that is “integrated, stable, resilient, and full of opportunities.”
Observers see this meeting as an opportunity for members of the Association of African Central Banks to discuss the major economic challenges facing African central banks and to explore the shared perspectives guiding the association’s work. This necessitates careful handling of exchange rate fluctuations to support competitiveness and manage inflationary pressures, while enhancing close coordination between monetary and fiscal authorities to reach a coherent mix of macroeconomic policies that promotes sustainable growth—taking into account an international context characterized by uncertainty linked to escalating trade and geopolitical tensions, increased exposure to climate shocks, and persistent inflationary pressures.
The head of the Central Bank of West African States welcomed the strong growth in the West African Economic and Monetary Union region, noting that inflation had dropped to 3.5%. He also stated that performance is expected to stabilize in 2025, with growth projected to reach 6.4%, and inflation to remain within the target range of 1% to 3%. Additionally, he said, “the favorable external account situation will allow monetary policy additional room for maneuver.”
In this context, Mr. Patrick Ndzana Olomo, Acting Head of the Economic Policy and Sustainable Development Department at the African Union Commission, called on “all African central bank governors to continue their relentless pursuit of macroeconomic stability with unwavering determination, through the implementation of appropriate monetary policies to maintain price stability and protect banking systems.”
It is noteworthy that the Association of African Central Banks includes 41 central banks, and its main objectives are to enhance cooperation among African central banks in the monetary, banking, and financial fields, as well as to promote, through a clearly defined convergence process, the emergence of a unified currency and a joint central bank for Africa.
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