Coup d'état in Mali: the financial aspect of sanctions

The Central Bank of West African States (BCEAO) has suspended most of its activities with Mali. (illustrative image) Olympia DE MAISMONT / AFP

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During the videoconference of heads of state in West Africa (ECOWAS) on Thursday, August 20, the sub-regional organization announced that it was going to break “financial and trade flows” with Mali. A pressure tactic, which is already in force through the Central Bank of West African States (BCEAO), which has suspended most of its activities.

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For several days, the counters of the Central Bank of West African States in Bamako have been closed. This measure is based "  on a verbal instruction  " to block financial flows, indicates a source. Several treasury accounts are no longer functional.

Concretely, it becomes more difficult for the "authorities" to incur expenses to pay the civil servants and diplomats. It is also difficult to incur current expenses, such as fuel. Finally, impossible to trade with other countries in the sub-region.

Put pressure on the junta

The objective is clear: to put pressure on the junta . But "  these dissuasive measures are disproportionate  ", comments a diplomat: "  it affects the Malians more than the junta  ", continues this source. The same skepticism expressed by banking establishments, which source and carry out their operations via the BCEAO.

"It is  impossible to say how long the banks will last, but we are in an  extraordinary situation ", deplores Hamadoun Bah, the secretary general of Synabef, a union bringing together banks and insurance companies. This trade unionist expresses a concern: that of seeing the banks run out of liquidity.

The consequences of all this for the banks is the risk that customers will flock in wanting at all costs to have their salaries when they are not available at this level. It can create a social sling. And there, the BCEAO will not be spared.

Hamadoun Bah

Bineta Diagne

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