The Bank of Central African States BEAC has begun injecting a 250 billion FCFA liquidity into the banking system of the CEMAC sub-region.This means that, banks in the zone will use the funds to keep them float on the economic huddles provoked by the Coronavirus.
The move is the second in two weeks which constitutes the bank’s response to mitigating the economic shocks of the coronavirus, pandemic affecting all six countries of the sub region.
BEAC had initially planned to inject liquidity following the okay of the Monetary Policy Committee of the bank in February 2020. But the emergence of Covid 19 brutally stopped the operation. However following a meeting of the committee in March, BEAC was authorized to resume liquidity injection and increase the amount.
These money will help the banks in Cameroon, Chad, the Central African Republic, Equatorial Guinea, Congo and Gabon to meet the financial demands of economic operators whose business ventures are affected by the pandemic. The sub regional bank has also extended the range of acceptable collateral for refinancing operations on the money market. The liquidity injection operations which have started today April 9, 2020 will run through to the 16th of April 2020.
