Commercial banks across the Central African Economic and Monetary Community, CEMAC, have stepped up their demand for liquidity, with requests exceeding the amount supplied by the region’s central bank in the latest refinancing operation.
During a liquidity injection conducted on March 17, 2026, banks in the CEMAC bloc requested more than CFA400 billion, surpassing the CFA350 billion offered by the Bank of Central African States. The development signals a renewed appetite for funding after several months of relatively subdued demand.
The CEMAC region, which includes countries such as Cameroon, Gabon, Chad, Central African Republic, Republic of the Congo, and Equatorial Guinea, operates under a shared monetary framework, making central bank liquidity operations a critical tool for maintaining financial stability across multiple economies.
Banking sector insiders say the increase in demand for central bank funds typically reflects rising credit needs within the economy. As businesses expand operations and households seek financing, commercial banks often turn to the central bank when their internal liquidity levels are insufficient to meet lending demand.
The latest figures suggest a gradual rebound in economic activity across the region, even though demand has not yet returned to the elevated levels recorded in late 2025. During that period, liquidity requests surged dramatically, with banks seeking as much as CFA800 billion in October, prompting the central bank to significantly increase its liquidity injections.
Since the beginning of 2026, however, demand had moderated, indicating a period of relative stabilisation in financial conditions. The recent uptick now points to a possible shift, as lending activity begins to pick up again.
The Bank of Central African States uses liquidity injections as a key monetary policy tool to regulate money supply, support credit growth, and ensure that banks can meet short-term funding needs. By offering funds through refinancing operations, the central bank helps prevent liquidity shortages that could constrain economic activity.
However, when demand consistently exceeds supply, it can signal underlying pressures within the banking system. These may include increased borrowing by businesses, tighter liquidity conditions, or cautious lending behaviour by banks seeking to maintain adequate reserves.
Economists note that while higher demand for liquidity can be a positive indicator of economic recovery, it also requires careful management. If not properly balanced, excess demand could lead to rising borrowing costs or strain the banking sector’s ability to support sustained growth.
For policymakers, the challenge lies in calibrating liquidity provision to support expansion without triggering inflationary pressures or financial instability. The central bank may need to adjust its operations in the coming months if demand continues to rise, particularly if economic activity strengthens further across the region.
The evolving situation will be closely monitored by financial institutions and investors, as liquidity conditions play a crucial role in shaping credit availability, business investment, and overall economic performance within the CEMAC bloc.
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