(Business in Cameroon) – The Bank of Central African States (BEAC) offered a record 700 billion XAF in liquidity for the CEMAC banking system on October 7, 2025.
Despite the record amount, the operation fell short of demand, with commercial banks requesting a total of 817 billion XAF, according to the central bank’s data.
The surge in demand reflects an active credit market at the start of the school and university year, a period that typically drives up requests for education-related loans. Bankers note that reliance on central bank refinancing generally increases when loan demand from businesses and households exceeds banks’ available liquidity.
The trend is largely driven by Cameroon, which accounts for about 40% of the region’s banking sector.
The strong appetite for BEAC liquidity, prompting the central bank to raise its injections from 200 billion to 700 billion XAF, has been evident since March 2025, when the bank cut its Key Tender Rate (TIAO). The TIAO is the rate at which commercial banks borrow from the BEAC.
The rate cut ended more than two years of tight monetary policy, during which the BEAC repeatedly increased the TIAO to contain inflation by tightening access to central bank funds and commercial credit.
BRM
