(Business in Cameroon) – On September 17, 2024, commercial banks in the Central African Economic and Monetary Community (CEMAC) requested CFA512.2 billion in liquidity, far exceeding the CFA200 billion offered by the Bank of Central African States (BEAC). This rising demand highlights the growing needs of credit institutions since BEAC resumed injecting liquidity in June 2024, after more than a year of suspension.
BEAC initially offered CFA50 billion when liquidity injections restarted, but increased the supply to CFA250 billion by August 2024. Despite this, demand outpaces supply, signaling ongoing pressure on the banking market’s liquidity.
This situation follows months of restrictive monetary policy by BEAC, which raised interest rates and halted liquidity injections temporarily to curb inflation. About 20% of the inflation was attributed to monetary factors. BEAC also issued bonds to absorb excess liquidity in the financial system.
Since inflationary pressures eased in June 2024, BEAC has gradually relaxed its policies, providing liquidity to banks. However, the amount injected has not been enough to fully meet the banking sector’s growing needs, leading to a surge in demand.
