In 1959, the Central Bank of the West African States (Banque Centrale des États de l'Afrique de l'Ouest-BCEAO) succeeded the Currency Board of French West Africa and Togo as the bank of issue for the former French West African territories. In 1962, it was reorganized as the joint note-issue bank of Benin, Côte d'Ivoire, Mauritania (which left in 1973), Niger, Senegal, Togo, and Upper Volta (now Burkina Faso), members of the West African Economic and Monetary Union (UEMOA). BCEAO notes, known as CFA francs, are guaranteed by France without limitation, formerly to the French franc and now to the euro. Foreign exchange receipts of the member states go into the franc area's exchange pool, which in turn covers their foreign exchange requirements. In 1973, the member states of the BCEAO signed new statutes that, among other things, provided for increased Africanization of bank personnel, transfer of headquarters from Paris to Dakar, and greater participation of the bank in the development activities of member states.
Commercial banks operating in Senegal include the International Bank for Occidental Africa (French-owned), Banque Internationale pour le Commerce et l'Industrie du Senegal, Credit Lyonnais, Banque Senegalo Tunisienne, Ecobank, Societe Generale, Citibank, and Banque Islamique du Senegal. The most significant development bank is the government-controlled National Development Bank of Senegal, which participates in development projects and provides credit for government organizations, mixed societies, and cooperatives. Another development financing institution is the Housing Bank of Senegal. A new credit institution, the National Fund for Agricultural Credit, was created in 1984.
The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $727.1 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $1.2 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 4.95%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 6.5%.
There are no securities exchanges in Senegal.