24, October 2024
BEAC lowers liquidity offer to CFA300bn for Cemac Banks 0
On October 22, the Bank of Central African States (BEAC) launched a new liquidity injection operation for commercial banks. Unlike the previous two operations, where BEAC offered CFA340 billion, the offer on October 22 was reduced to CFA300 billion.
This reduction seems more in line with the current needs of the banks, based on recent results. Despite the gradual increase in liquidity offers by the central bank since resuming operations in June 2024, the volumes requested and actually taken up by the banks in the last two operations barely exceeded CFA270 billion. This is far from the CFA400-500 billion demands expressed by banks between June and September 2024.
The surge in liquidity needs during this period can be explained by the austerity imposed on credit institutions from late 2021 to May 2024 by the central bank. This period saw the implementation of measures aimed at draining banks’ coffers, including raising key interest rates, intensifying liquidity withdrawal operations, and suspending liquidity injections. These actions were officially intended to combat inflation by restricting access to credit.
BEAC notes that 20% of inflation in the Cemac region is of monetary origin. The central bank explains that injecting large volumes of liquidity into the economic system, particularly through bank financing, contributes to inflation, especially in Cemac countries where most goods and services are imported.
However, with the easing of inflationary pressures in Cemac markets since the start of 2024, BEAC has loosened its grip on bank liquidity. Consequently, the central bank resumed its liquidity injection operations in June 2024, after more than a year of suspension.
Source: Business in Cameroon
24, October 2024
CPDM Crime Syndicate: Senate convenes November session despite president’s absence 0
Aboubakary Abdoulaye, the first vice-president of the Senate, signed a decree on October 23 calling for the Senate to meet in November. This is unusual, as it is typically the Senate president, Marcel Niat Njifenji, who signs such decrees.
“The president is once again getting medical treatment abroad,” a parliamentary source said.
The absence of the upper house president has sometimes affected how the Senate works. During the March session, the Senate’s leadership team couldn’t be renewed for several days because the outgoing president was away. Sources in the Senate said he was recovering abroad and could not run for reelection.
The decree signed by the first vice-president aims to prevent further delays. Aboubakary Abdoulaye, a senator appointed by the ruling party CPDM and the powerful lamido of Rey Bouba in the North region, has been leading Senate debates for several years. Marcel Niat Njifenji, also an appointed senator from the Western region, usually only oversees the opening sessions.
The November session is expected to focus mainly on reviewing and approving the 2025 budget proposal presented by the executive. It will feature a general policy speech by the Prime Minister, followed by oral questioning sessions for government members. This speech, a key moment of the November session, will provide an overview of the government’s socioeconomic and cultural actions over the past year and outline the main directions for the next fiscal year.
Source: Sbbc