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Finance: BEAC offers liquidity in the Cemac banking circuit, some banks left wanting more

11/09/2024
Source : ORISHAS-FINANCE
Categories: Economy/Forex Sectors

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On September 3, 2024, the Bank of Central African States (BEAC) carried out a new liquidity injection operation worth 250 billion CFA francs into the CEMAC banking circuit. Credit institutions are served leaving some of them hungry.

The BEAC revealed in a press release that seven banks expressed an overall liquidity need of 423 billion CFA francs, corresponding to a subscription rate for the operation of nearly 170%. Limited by the available envelope, the bank was only able to serve them 250 billion CFA francs, at an average interest rate of 6.75%. According to the results of this operation published on September 5, 2024, the entire envelope was captured by credit institutions, leaving some of them hungry. This rush by commercial banks towards liquidity proposed by Beac testifies to a need for liquidity by credit institutions operating in the Cemac zone. According to the press release, the bank refinancing operation came the day after the failure of an attempt by BEAC to extract 50 billion CFA francs from banks' coffers, through an issue of

vouchers on September 2.
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