Faced with renewed interest from commercial banks in refinancing operations, the Bank of Central African States (BEAC) increased its liquidity offer to 220 billion FCFA on December 17, 2024. This increase of 60 billion compared to the two previous operations aims to meet the growing needs of credit institutions, stimulated by the end-of-year holiday period.
The BEAC, which regulates the monetary systems of the six countries of the CEMAC zone (Cameroon, Congo, Gabon, Equatorial Guinea, Chad and the Central African Republic), has stepped up its interventions at the end of the year. On December 17, 2024, the institution launched a new liquidity injection operation, increasing its envelope to 220 billion FCFA.
Compared to the operations of December 3 and 10, which were limited to 160 billion each, this increase marks a proactive response to the growing needs of banks. This development comes after a significant drop in injections, from 320 billion to 160 billion FCFA between the end of November and the beginning of December. However, the demand expressed by banks showed that the initial offers were insufficient. On December 3, for an offer of 160 billion, banks had requested 224.8 billion FCFA. A week later, the entire supply had been absorbed, leaving unmet demand reaching 162.8 billion FCFA.
The rise in banks’ interest in these operations is explained in particular by the increase in credit requests during the festive period. According to bankers, the end-of-year holidays are traditionally synonymous with an intensification of consumption and, consequently, an increase in the need for liquidity to meet the demands of consumers and businesses. This period sees banks strengthen their financing capacities to support consumer spending and seasonal investments.
In addition to the impact of the holidays, the renewed interest from credit institutions could indicate an improvement in economic conditions or an anticipation of a future tightening of monetary conditions. Banks are thus seeking to secure their resources to ensure the continuity of their short-term lending and refinancing operations. The BEAC, aware of these dynamics, is adjusting its interventions to stabilize the regional money market and promote better access to credit.
By increasing its supply, the BEAC reaffirms its central role in regulating banking liquidity, a crucial issue for the economic stability of CEMAC. This active monetary policy aims to balance supply and demand, while supporting growth in a strategic period of the year.
