(Business in Cameroon) – On August 13, 2024, the Bank of Central African States (BEAC) launched a major liquidity injection into commercial banks, offering CFA225 billion. This is the largest amount since the resumption of these operations in June 2024, following a year-long hiatus. The central bank reported that the offer was oversubscribed by nearly 175%.
The significant interest from credit institutions and the increase in liquidity volumes available to Cemac banks—from 50 billion to 225 billion FCFA in just two months—highlight a strong demand after several months of strict monetary policies. These policies included a gradual rise in key interest rates to make refinancing more expensive for commercial banks, a halt to liquidity injections, heightened liquidity absorption operations, and the issuance of BEAC bonds.
According to the central bank, these measures aimed to tighten banking conditions and limit economic agents’ access to financing to address the 20% of inflation attributed to monetary factors. However, with inflationary pressures easing since June 2024, the BEAC appears to have adopted a less restrictive policy.
