Arriving at the head of Senegal at the beginning of April 2024, Bassirou Diomaye Faye, a few weeks after his inauguration, announced that he would repatriate the country’s gold reserve from the United States. Although this initiative sparked debate among financial analysts, Senegal remained firm in its resolve.
Despite the potential logistical challenges associated with repatriating gold reserves, Senegalese authorities emphasize the importance of securing national wealth in light of changing economic conditions.
Bassirou Diomaye Faye’s decision underlines Senegal’s commitment to protecting its financial interests and ensuring the stability of its assets in an increasingly uncertain economic environment.
By taking preventative measures to mitigate risks, Senegal seeks to navigate the complexities of the global economic landscape with caution and foresight.
It should be remembered that part of Senegal’s gold reserves are held not only in the United States, but also in France. Bathili Ousmane, professor of law, is outraged by this state of affairs. According to him, Senegal should reconsider the situation: “France’s entire gold stock is held on national territory, at the headquarters of the Bank of France, which is good for the stability of its economy. So why does this same France advise us to continue to keep our gold currency in Paris? African countries are not threatened by war; we want our reserves to remain with us.”
Didier Bruneel, the honorary general director of the Banque de France, explains the tendency of African countries to continue to store their gold reserves in France by lessons learned from the past. According to Mr. Bruneel, gold remains the only means of payment that everyone accepts no matter what.
Some countries like China and Russia have increased their gold reserves in recent years, suggesting a renewed interest in gold as a store of value. Even though most countries have abandoned gold standards, gold continues to be used as a benchmark of value to evaluate currencies and assets. Which means it is important for Senegal to repatriate all its gold from France for its economy.
The new Senegalese authorities, led by Bassirou Diomaye Faye, seek to achieve the country’s independence in different areas. The financial aspect plays a major role in this process. The goal will not be achieved as long as Senegal’s gold reserves are in the United States and France.
By Mara Diallo
