(Business in Cameroon) – The Bank of Central African States (BEAC) injected 320 billion CFA francs into the CEMAC banking system on May 16, 2025, an amount that fell significantly short of the 540.9 billion CFA francs requested by commercial banks across the six-nation bloc.
This strong demand for liquidity emerged just two months after the BEAC’s Monetary Policy Committee lowered its key policy rate, signaling a shift towards looser monetary conditions. On March 24, 2025, the central bank cut its interest rate on tenders (TIAO) from 5% to 4.5%, marking the first reduction since late 2021 and reversing a series of previous hikes aimed at tightening credit access.
The rate reduction was intended not only to ease commercial banks’ refinancing conditions with the BEAC but also to encourage these institutions to lower lending rates to businesses and other economic agents, thereby stimulating regional economic activity. However, the persistent high demand for liquidity, even after the rate cut, suggests that commercial banks continue to face considerable pressure, underscoring ongoing challenges within the CEMAC banking sector despite the central bank’s efforts to inject capital.
BRM
