(Business in Cameroon) – On October 16, the Bank of Central African States (BEAC) offered commercial banks CFA 340 billion in liquidity. This announcement came shortly after a similar offer on October 8, 2024. However, banks only managed to secure CFA 285 billion, resulting in a subscription rate of 84%. In contrast, the previous offer on October 8 had a lower subscription rate of 76.3%.
This situation highlights the ongoing need for liquidity among commercial banks. However, it does not indicate a critical level that would require offers exceeding CFA 300 billion. The amounts offered generally match the needs expressed by banks in recent months.
A reduction in the central bank’s offers below these levels could hurt credit institutions, especially after more than two years of a restrictive monetary policy. This policy aimed to reduce banks’ reserves to limit access to credit and was officially designed to combat rising inflation in the CEMAC region.
Since the start of the year, inflationary pressures have eased across the region. As a result, the BEAC has started to loosen its grip on bank liquidity. The central bank resumed liquidity injection operations in June 2024 after a pause of over a year, signaling a shift toward supporting banks more effectively.
