BATs help finance the government’s cash needs. Interest is deducted upfront: the purchase price reflects the expected return.
Treasury bill (BAT)
In a nutshell
A Treasury bill is short-term borrowing issued by a government. In the West African Monetary Union (UMOA), BAT stands for Bons Assimilables du Trésor.
On this page
Explained simply
A practical example
Simplified hypothetical example: paying CFA 970,000 for a scheduled repayment of CFA 1,000,000 at maturity gives a gross difference of CFA 30,000.
Further reading
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What this means
For a scheduled CFA 1,000,000 repayment, the gross difference is CFA 30,000. This is not an annualised rate.
Educational scenarios. Amounts and rates are fictional, not current market conditions.