In 1959, the Central Bank of 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 (then Dahomey), Côte d'Ivoire, Mauritania (which withdrew in 1973), Niger, Senegal, Togo, and Burkina Faso (then Upper Volta). BCEAO notes, known as CFA francs, are guaranteed by France without limitation. Foreign exchange receipts of Burkina Faso go into the BCEAO's exchange pool, which in turn covers its foreign exchange requirements.
Other banks are the International Bank for Commerce, Industry, and Agriculture of Burkina Faso, the National Development Bank (80% government-owned), the National Fund of Agricultural Credit of Burkina Faso (54% state-owned), the state-owned National Fund of Deposits and Investment, the International Bank of Burkina, Banque Nationale de Paris (BNP), Bank of Africa (BOA), and Ecobank Burkina.
The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $357.8 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $537.5 million. 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%.