Regional sanctions after the 2023 coup

Niger belongs to the West African Economic and Monetary Union and uses the CFA franc issued by the Central Bank of West African States (BCEAO), pegged to the euro. After a military takeover in July 2023, ECOWAS imposed sanctions, including closing borders, suspending financial transactions and freezing the country's assets at the regional central bank, and cut electricity supplies from Nigeria. The restrictions disrupted trade and payments for many months, and Niger could not access the regional bond market or service some debt, until the sanctions were lifted in February 2024. Because it has no independent monetary policy, Niger's adjustment fell on trade, public finances and prices, with food and fuel costs rising. At the same time, the start of oil exports through a new pipeline to Benin from 2023 boosted output, which explains why Niger's growth series is volatile in these years.