(Business in Cameroon) – The Bank of Central African States (BEAC) injected a record 800 billion CFA francs ($1.3 billion) into the banking system of the Economic and Monetary Community of Central Africa (CEMAC) on October 28, 2025, which includes Cameroon, Congo, Gabon, Equatorial Guinea, the Central African Republic, and Chad.
Despite the unprecedented injection, demand for liquidity from commercial banks reached 810 billion CFA francs, leaving a shortfall of 10 billion, according to data released by the regional central bank. The gap highlights persistent pressure on bank liquidity and reflects a credit market that remains highly active across the region.
Analysts say the imbalance between supply and demand shows the strength of lending activity, with banks increasingly turning to BEAC for refinancing as loan demand from households and businesses outpaces their own resources. The situation also underscores the effects of the central bank’s accommodative monetary policy, introduced in March 2025 after two years of tightening aimed at curbing inflation.
At that time, BEAC cut its main policy rate, the tender interest rate, from 5 percent to 4.5 percent, a move that eased access to refinancing and encouraged banks to expand their lending portfolios, spurring credit growth across the CEMAC zone.
A record rise in liquidity supply
Since shifting to a looser stance, BEAC has steadily ramped up its weekly liquidity offerings, rising from 200 billion CFA francs at the start of the year to the current 800 billion, the highest level in recent history. Yet, demand continues to outstrip supply, signaling both the vitality of the banking sector and the growing financing needs of national economies.
While the policy aims to support credit to the real economy, some analysts warn it could have side effects. Sustained demand for liquidity and greater reliance on refinancing could eventually drive up commercial lending rates, raising borrowing costs for businesses and households.
For now, however, the robust credit expansion is viewed as a positive sign of recovery within CEMAC. BEAC has pledged to maintain prudent liquidity management to balance economic stimulus with financial stability.
BRM
