(Business in Cameroon) – The Bank of Central African States (BEAC) injected 420 billion CFA francs into the banking system on June 3, 2025. This marks the second significant liquidity offering by the central bank to commercial banks within a week and represents the largest amount of financing extended to CEMAC credit institutions since the BEAC resumed liquidity injections in June 2024. These operations had been suspended for over a year as part of the BEAC’s tight monetary policy aimed at curbing inflation.
The increased volume of funds made available to commercial banks follows a recent operation that highlighted strong demand from credit institutions. On May 16, 2025, a liquidity injection attracted total bids of 540.9 billion CFA francs, exceeding the BEAC’s capped offer of 320 billion CFA francs.
The strong demand for central bank liquidity is likely driven by the easing of refinancing conditions introduced by the BEAC some two months ago. In a move to encourage commercial banks to seek refinancing and, by extension, to stimulate lending across CEMAC economies, the BEAC cut its key policy rates on March 24, 2025. This was the first rate cut since late 2021, following a series of rate hikes designed to tighten access to financing for economic agents.
BRM
