The Bank of Central African States (BEAC) has increased its liquidity injection into the CEMAC banking system to CFA400 billion (US$680 million), reflecting a rebound in credit demand from businesses and households across the region, the central bank said Thursday.
The operation, launched on March 24, marks a CFA50 billion increase over the previous intervention held a week earlier on March 17. BEAC officials said the higher allocation matches the level of liquidity demanded by commercial banks during earlier operations, when supply fell short of expressed needs.
“The latest liquidity boost ensures that banks can continue lending to support economic activity while meeting their short-term cash requirements,” a BEAC spokesperson told AFP. “The rebound in demand reflects a recovering private sector and household appetite for credit.”
Credit demand across the six-member CEMAC bloc — Cameroon, Central African Republic, Chad, Congo-Brazzaville, Equatorial Guinea, and Gabon — has strengthened after a period of relative caution in early 2026. Bankers noted that financial institutions often turn to central bank funding when loan demand exceeds available reserves, particularly at the start of new fiscal quarters.
Despite the increase, BEAC officials said that current demand remains well below the peaks recorded in late 2025, when liquidity injections had to be scaled up rapidly. In September 2025, commercial banks drew CFA650 billion, followed by a surge to CFA700 billion and CFA800 billion in October, as heightened borrowing needs coincided with government spending and seasonal trade activity.
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“The figures show a market gradually normalizing after last year’s exceptional pressures,” said an economist at a Yaoundé-based investment bank. “Banks are still cautious, but they are more willing to lend now that macroeconomic indicators have stabilized and businesses are seeking expansion financing.”
BEAC has gradually scaled back liquidity operations since the start of 2026. The central bank maintained a cautious approach earlier this year, providing sufficient cash to meet routine banking needs while avoiding overstimulating credit growth. The March 24 injection represents the latest adjustment in this measured policy stance.
The central bank’s actions are also influenced by broader economic conditions in the CEMAC region. Commodity prices, especially oil and agricultural exports, have shown moderate recovery, while public infrastructure projects and regional trade initiatives continue to drive demand for financing.
Bankers say that liquidity injections by BEAC not only facilitate lending but also help maintain stability in interbank markets and the regional payment system. By aligning supply with banks’ expressed demand, the central bank can smooth fluctuations in short-term interest rates, supporting confidence in the local banking sector.
“The CFA400 billion injection allows banks to meet both corporate and household credit requests without disrupting interbank market operations,” said a senior trader in Douala. “It signals that the central bank is attentive to evolving financial conditions and willing to act proactively to support growth.”
Analysts expect BEAC to continue monitoring credit demand closely, adjusting liquidity operations as the year progresses. With business confidence gradually improving across member states, the central bank is likely to maintain a flexible approach, ensuring that commercial banks can respond to credit needs while avoiding excessive monetary expansion that could stoke inflation.
The latest operation comes amid ongoing efforts by CEMAC governments to stimulate private-sector activity, including infrastructure investment and trade facilitation measures. Combined with supportive central bank policies, these initiatives are expected to reinforce the region’s economic recovery in 2026, providing an encouraging backdrop for lenders and borrowers alike.
