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12, September 2024
BEAC cuts liquidity injection to banks to CFA 200bn 0
The Central Bank of Central African States (BEAC) announced yesterday a new liquidity injection for banks, amounting to CFA200 billion. This comes just a week after a similar operation for CFA250 billion, which saw a subscription rate of almost 170%. Banks had expressed a total demand of CFA423 billion.
After gradually increasing the weekly liquidity offer from CFA50 billion in June 2024, when liquidity injections into the banking sector resumed, to CFA250 billion in August 2024 BEAC has now reduced its offer. However, recent refinancing operations show that banks in the CEMAC region are in significant need of liquidity. In recent months, demand has consistently exceeded supply.
This cautious approach by the central bank is aimed at balancing the fight against inflation with the need for economic growth. BEAC continues to tighten its refinancing policy to curb inflation, despite signs that inflation has eased in the CEMAC region over the past few months. BEAC notes that economic growth, which depends on financing the economy, is projected at 3.6% in 2024 the highest level in a decade.
Source: Business in Cameroon