(Business in Cameroon) – The Bank of Central African States (BEAC), the central bank for the six CEMAC member countries (Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and Central African Republic), announced a record 420 billion CFA francs liquidity injection operation on May 27, 2025. This marks the largest liquidity provision ever offered to commercial banks by the BEAC since it resumed such operations in June 2024, following a suspension of over a year.
While awaiting the results of this latest operation, the increased offering follows a period of significant demand from the banking sector. A previous liquidity injection on May 16, 2025, saw commercial banks request a total of 540.9 billion CFA francs, although the BEAC had capped its offer at 320 billion CFA francs.
This surge in demand from commercial banks for central bank liquidity comes just two months after the BEAC eased its refinancing conditions. In a move to encourage refinancing by liquidity-seeking commercial banks and, by extension, to support the financing of the CEMAC economies, the BEAC on March 24, 2025, reduced its key policy rates for the first time since late 2021. This decision followed a series of consecutive rate hikes that had aimed to tighten access to bank credit.
As a direct consequence of this policy shift, the tender interest rate (TIAO), the rate at which commercial banks refinance with the central bank, was lowered from 5% to 4.5%. This reduction is designed not only to facilitate easier access to central bank liquidity for commercial banks but, more importantly, to drive down the interest rates that credit institutions charge on loans extended to businesses and consumers throughout the CEMAC region.
BRM
