Emerging Markets Rates and Currencies Handbook

Senegal (XOF - West African CFA Franc) Citi in Senegal Citi has been present in Senegal since 1975. The branch offers a broad suite of products and services including Cash Management, Trade Services and Treasury Products to multinational and local corporates, public sector and financial institution clients. Market Overview BCEAO (Central Bank of West African States) oversees fixed exchange rate regime for the Countries of the WAEMU Zone (in French “Zone UEMOA”). XOF is pegged to the EUR. Main currency pairs: EURXOF; USDXOF. Main flows come from corporate and institutional clients. There is currently no existing Interest Rate Market for Senegal and for the WAEMU zone in general. The main interest rate products are sovereign bonds issued at fixed rate (no asset priced with floating rate). Hence, there is no local market on IRS, while the Central Bank does not mention any prohibition regarding this potential activity. The central bank repo rate on one-week tenor is used as a proxy for money market quote. Convertibility Convertible with restrictions subject to local exchange control regulation. Foreign currency to local currency conversion can be done without any justification while local currency to foreign currency is subject to supporting documentation. 141