BANK
CRYTOCURRENCIE – U.S. Federal Reserve Report Ranks Cryptocurrencies as Threats to Financial Stability
In recent months, cryptocurrencies have seen tremendous growth. As these highly volatile assets evolve, concerns about the current financial system grow. It is no surprise that the findings of a FED report confirm this trend.
Bitcoin (BTC) and other cryptocurrencies as well as stability are among the threats to the financial stability of the United States, as are concerns related to covid-19 and tensions with China, The Ecofin Agency learned from a report by the US Federal Reserve (FED) earlier this month.
As part of its market intelligence gathering, the US Central Bank surveyed a wide range of contacts between February and April on the risks to the country’s financial stability. These contacts include, it is learned, brokers, investors, consulting firms, politicians and academics.
While the risks associated with the Covid-19 pandemic with vaccine-resistant variants remain the greatest concern, Interviewees cited other risks such as economic and market shocks resulting from a potentially faster-than-expected economic recovery. Cryptocurrencies and stablecoins are in good position in the list of the most mentioned threats, whereas they were not found in the previous EDF survey.
The appearance of these digital assets in this list is not surprising. It reflects the sentiment that has prevailed in the markets for several months, as cryptocurrencies continue to gain popularity. The awards of BTC, Ether and their other peers crossed record thresholds this year, pushing several players in the global financial sector who disdained this asset class for their volatilities to change their tone and take an interest in it. Concerned about this meteoric growth, some central banks have embarked on their own digital currency projects; initiatives that have multiplied in recent times.
As more and more people talk about the impending revolution brought about by these assets, several major players (including reputable financial institutions) are pushing for regulatory changes in the United States and elsewhere in the world. For example, for Paypal’s CEO, Dan Schulman, who believes that the international financial system will undergo more changes in the next 10 years than in previous decades, changes are needed to be ready for this revolution.
Source: Agence Ecofin / By Louis-Nino Kansoun
Mauritania is in the spotlight. On Thursday, May 29, 2025, Sidi Ould Tah was elected president of the African Development Bank (AfDB), at the annual meeting of the institution held in Abidjan. He succeeds Akinwumi Adesina of Nigeria, in office since 2015.
His election came after a hard-fought duel against Samuel Munzele Maimbo of Zambia, who finished in second place. The election, which was marked by major geopolitical and economic issues, took place against a background of high expectations regarding governance and development financing on the continent.
The Senegalese Amadou Hott, long perceived as one of the favorites, finishes in third place, followed by the South African Bajabulile Swazi Tshabalala. Despite significant diplomatic support, notably for Hott, the momentum in favour of Sidi Ould Tah has prevailed in the last few rounds.
Former minister and general manager of the Arab Bank for Economic Development in Africa (BADEA), Sidi Ould Tah is recognized for his experience and strategic vision. He will officially take office on 1 September 2025.
Photo credit: Forbes Africa
BANK
SENEGAL – 511.3 billion CFA francs in savings and 677 billion CFA francs in loans granted in 2022 in microfinance
The Senegalese Minister of Microfinance and Social and Solidarity Economy chaired, this Thursday, July 27, 2023, the 27th meeting of the National Committee for the Coordination of Microfinance Activities. Victorine Ndeye reported that microfinance affects 22% of the population with 511, 3 billion CFA francs in savings and 677, billion CFA francs in loans granted in 2022.
The 27th edition of the National Coordination Committee for Microfinance Activities was held on Friday.
According to the Minister of Microfinance and Social and Solidarity Economy, Victorine Ndeye, microfinance plays a crucial role in financial inclusion by providing accessible financial services to low-income populations and small entrepreneurs. It is a powerful tool to reduce poverty, create jobs, support local entrepreneurship and promote the economic empowerment of women and youth,” she says. “In 2022, microfinance expanded with a total of 296 institutions with 995 points of service across the country. Today 4,034,538 accounts remain active and Microfinance reaches 22% of the population, with 511.3 billion in savings and 617.3 billion in loans granted”. The minister indicates that his department is aware that we must reinvent to meet the new requirements and needs of a more vulnerable population in times of major crises that our country is going through in the face of exogenous shocks related to the Covid pandemic 19 and the Ukrainian crisis. “We intend to strengthen the synergy of microfinance actors, the government, technical and financial partners and microfinance institutions to meet the challenges we face. We must continue to promote financial stability, inclusion and transparency in the sector, but we must also address universal access to financial services through a better perception of the sector,’ she said. In his view, this requires a target-based approach, better risk management and strong governance. We also need to encourage innovation in the microfinance sector. Emerging financial technologies, such as mobile banking, innovative financing and our proven savings and credit models, offer real opportunities to expand access to financial services,’ she says. It is their responsibility to ensure that these innovations benefit everyone, including the most vulnerable and the most remote. ‘ We will continue to work towards a favourable regulatory environment that encourages investment, diversification of offerings and the expansion of microfinance institutions,’ she says.
Economic activity in WAEMU remained buoyant in the first quarter of 2023, with a 5.4% increase in GDP over one year, after 5.3% in the previous quarter.
According to the information provided by BCEAO, the business climate indicator, which synthesizes the views of business leaders, remained above its long-term trend at 101.1 percentage points. This development reflects the continuing confidence of business managers in the favourable economic outlook. The growth gain, which is an indication of the minimum level of growth that would be achieved by the end of the year, is estimated at 3.4% in the first quarter of 2023,” the BCEAO informs.
The growth of Gdp in volume terms in the Union is the result of the continued good orientation of economic activity, particularly in the secondary and tertiary sectors. The contribution of the secondary sector increased from 0.6 percentage points (pdp) in Q4 2022 to 0.7 PDP in the quarter under review.
The contribution to growth in the tertiary sector was 3.4 pdp in the first quarter of 2023 compared to 3.3 pdp in the previous quarter. In contrast, the primary sector contribution edged down to 1.3 PDP in Q1 2023 from 1.4 PDP in Q4 2022.
