BEAC Keeps Bank Liquidity Offer at CFA500 Billion Despite Shifting Demand

The Bank of Central African States (BEAC) launched a new liquidity injection operation on May 25 for banks operating in the Cemac region.

The operation, which will run from May 28 to June 4, offers CFA500 billion to commercial banks across the six-member bloc: Cameroon, Congo, Gabon, Equatorial Guinea, Chad and the Central African Republic.

In its tender notice, the central bank said the operation would take place through a variable-rate auction, with the interest rate for bids set at 4.75%. The latest operation confirms BEAC’s decision to maintain its liquidity offer at CFA500 billion despite fluctuating demand from banks in recent weeks.

On May 5, banks requested CFA572.2 billion, above the amount offered by the central bank. BEAC allocated the full CFA500 billion available. A week later, the trend reversed. During the May 12 operation, BEAC increased the amount offered to CFA550 billion, but banks requested only CFA364.2 billion. The full amount requested was allocated.

On May 18, the central bank returned to an offer of CFA500 billion, while banks requested CFA426 billion. The recent movements highlight uneven refinancing demand within the Cemac banking system. After exceeding the central bank’s offer earlier in May, demand later dropped below the amounts available in the following operations. Banks mainly use central bank refinancing to manage short-term liquidity and treasury needs.

Bankers say demand for refinancing usually rises when customer financing needs or liquidity pressures exceed internal resources. But requests to the central bank also depend on treasury management, available collateral and conditions in the interbank market. Against that backdrop, BEAC’s decision to maintain a CFA500 billion offer reflects a cautious approach.

The central bank continues to supply liquidity to the banking system without adjusting its offer mechanically each week based on demand swings.

The strategy allows BEAC to support bank financing activity while limiting the risk of excess liquidity in the financial system. Despite the increase seen since the start of 2026, current demand remains below the peaks recorded in late 2025.

At that time, bank demand exceeded CFA650 billion before rising to CFA700 billion and later CFA800 billion in October, prompting BEAC to gradually increase its liquidity injections. The latest figures suggest that banks still need refinancing support, but liquidity pressures are lower than they were during the second half of 2025.

For BEAC, the challenge now is to balance support for bank lending with liquidity control and monetary stability across the Cemac region.

BRM