These assets, commonly referred to as Assets Under Management (AUM) refer to the total value of assets that a central bank holds and manages in various forms, including foreign exchange reserves, gold, government bonds, and other financial instruments.
AUM is a key indicator of a central bank’s financial health and its ability to manage economic policy and financial stability.
For central banks, AUM plays a critical role in their monetary policy framework and broader economic management.
These assets are used to stabilize the national currency, manage inflation, and intervene in financial markets, particularly in times of economic crisis or instability.
African Central banks play a crucial role in shaping the economic landscape of their respective countries and, by extension, the continent as a whole.
These institutions are tasked with formulating and implementing monetary policies, managing inflation, stabilizing currencies, and fostering economic growth.
AUM in African central banks
The influence of African central banks extends beyond national borders, impacting regional economic integration, foreign investment, and Africa’s position in the global economy.
According to Statista, as of 2024, the Central bank of Libya and the Bank of Algeria ranked in joint first, with each central bank managing 81 billion U.S. dollars in AUM.
The South African central bank ranked as the third largest in the region by Assets Under Management (AUM) ($64 billion)
According to the report, the leading central banks in Africa in 2024, by Assets Under Management (AUM) include;
| Rank | Country | AUM ($) |
|---|---|---|
|
1 |
Algeria |
81 Billion |
|
2 |
Libya |
81 Billion |
|
3 |
South Africa |
64 Billion |
|
4 |
Egypt |
45 Billion |
|
5 |
Morocco |
37 Billion |
|
6 |
Nigeria |
37 Billion |
|
7 |
BCEAO |
16 Billion |
|
8 |
Angola |
15 Billion |
From the table, Algeria and Libya lead with $81 billion, benefiting from oil and gas reserves to stabilize their economies.
South Africa follows with $64 billion, using reserves to manage its industrial economy and currency. Egypt has $45 billion to support the pound and manage debt.
Morocco and Nigeria hold $37 billion each, relying on diverse economies and oil exports.
BCEAO, representing West African countries, manages $16 billion to stabilize the CFA franc. Angola, with $15 billion, uses its oil wealth to stabilize the kwanza.
In summary, AUM helps these nations manage economic stability and currency value.
