Faced with a growing demand for liquidity and the pressure on financing systems in the sub-region, the Bank of Central African States (BEAC) recently made an exceptional injection of 750 billion FCFA into banking circuits, during its latest call for tenders.

This is the highest level recorded since 2019, up 50 billion CFA francs compared to the previous week. More specifically, this operation aims to support the financing capacities of commercial banks in the sub-region, which are called upon to play a greater role in financing the real economy, particularly businesses and states seeking resources to meet their cash flow needs.

Indeed, the strong demand from banking institutions reflects the growing strain on liquidity in an economic context marked by increasing credit needs, rising public spending, and the slow post-crisis recovery. Through this intervention, the Bank of Central African States is strengthening its role as a central player in monetary regulation, while helping to preserve the stability of the subregion’s banking system. It is also seeking to avoid a credit crunch, which could hamper the already fragile economic activity in several member countries.

It should be emphasized that this high level of injection reflects the structural fragility of public finances in the Economic and Monetary Community of Central Africa but also the desire of the monetary authorities to maintain favorable financing conditions to support economic recovery efforts.