2024-05-16-IMF-Recent_Challenges_to_the_Conduct_of_Monetary_Policy_in_the_WAEMU_20页_883kb

报告摘要

Recent Challenges to WAEMU Monetary Policy

Main Issues:
- Inflation spike (receding by 2023).
- Persistent erosion of external reserves (US$24.2B to US$17.6B).
- Strains in the regional financial market due to large fiscal deficits, external deficits, and bank reluctance to hold sovereign securities.
Policy Responses:
- Policy Rate Hikes: 75 bps in 2022 to curb inflation, interrupted by liquidity injections in 2023.
- Refinancing Method Shift:
  - 2020: Switch from FQVR to FRFA (fixed-rate auctions) to ensure liquidity access, later reversed due to concerns about rates.
  - 2023: Return to FQVR to control liquidity but faced challenges in aligning with policy goals.
- Secondary Market Purchases: Bought ~CFAF 3 trillion in sovereign securities in 2023 to inject liquidity and support markets.
Constraints and Coordination:
- Tighter liquidity management constrained by financial stability risks.
- Weak transmission of monetary policy due to segmented interbank markets and illiquid sovereign debt.
- EMH: Enhanced coordination with fiscal authorities to restore reserves and reduce reliance on central bank refinancing.
- Recommendations:
  - Raise policy rates to rebuild reserves.
  - Establish a baseline path for net domestic assets (NDA) to align liquidity injections with reserve objectives.
  - Fiscal discipline is vital to reduce deficit-driven liquidity demand.