(Business in Cameroon) – The Bank of Central African States (BEAC) recently offered CFA320 billion in liquidity to commercial banks across the Central African Economic and Monetary Community (CEMAC) countries, including Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic. However, banks expressed interest in only CFA152 billion, resulting in a 47.5% subscription rate — the lowest since BEAC resumed these liquidity injections in June 2024 after a year-long suspension.
This low subscription rate, announced by BEAC on November 6, 2024, reflects a notable decrease in banks’ appetite for the central bank’s liquidity offerings. When BEAC reintroduced these operations in June, banks showed a strong demand, with requests often reaching CFA500 billion per week.
The initial surge in demand led BEAC to raise the liquidity cap for banks, moving it from CFA50 billion in June to CFA350 billion by mid-October. However, BEAC then began reducing this amount, bringing it down to CFA240 billion by the end of October. The amount was raised again to CFA320 billion on November 5, but banks’ demand has recently averaged around CFA250 billion per week, showing a cooling trend.
This latest operation underscores the evolving dynamics in liquidity needs within the CEMAC banking sector and hints at a shift in how banks are managing their capital.
