OUAGADOUGOU — A notable proposal for the creation of a local currency in Burkina Faso, akin to the Special Drawing Rights (SDR) used by the International Monetary Fund, has been put forward by a teacher-researcher at Thomas Sankara University. The initiative aims to foster economic independence and facilitate transactions within the country's public institutions before potentially expanding to dealings with private individuals.

According to Burkina Information Agency, the local currency could begin as a system of settlement and compensation among public institutions. He suggests that this new currency might initially involve paper currency forms such as the FCFA, dollar, or euros, and evolve to resemble the IMF's SDR if proven robust and stable. "I think that the [Bank of Treasury Deposits and Public Accounting] must move towards the creation of a local currency. It can start with a settlement and compensation system between public institutions using a specific monetary unit," Ouédraogo explained, highlighting the potential for gradual integration into wider market use.

The educator further emphasized that the success of this currency would depend heavily on its credibility and the government's commitment to its regular usage in trade. "The Burkinabes need to know that in the West, they use several currencies simultaneously and that this does not pose any problems. It is the solidity of a currency and its ability to facilitate exchanges with other partners that will ensure its credibility," he stated.

This suggestion comes shortly after Captain Ibrahim Traoré, the head of state of Burkina Faso, inaugurated the Treasury Deposit Bank on August 2. The bank is designed to provide banking services through regional, provincial, and departmental treasuries to public institutions, state companies, and local authorities, as part of a broader effort to enhance financial autonomy and reduce dependence on the CFA Franc, which is increasingly seen as a legacy of French colonial rule.

As Burkina Faso continues to combat terrorism and other forms of aggression, the introduction of a local currency could represent a significant step towards economic self-determination and resilience.