CEMAC Banks Raise BEAC Liquidity Bids to CFA904 Billion
Central bank bids exceed the CFA800 billion offer, widening the funding gap to CFA103.9 billion in the latest auction.
Key points
- CEMAC banks requested CFA903.9 billion from the BEAC on September 15, a 12% increase from the previous week.
- The central bank offered CFA800 billion, leaving a funding gap of CFA103.9 billion with a 112.9% subscription rate.
- The BEAC cut its policy rate to 4.50% in June, but data does not confirm this caused the recent demand spike.
CEMAC banks requested CFA903.9 billion in liquidity from the Bank of Central African States during the September 15 auction. This figure marks a 12% weekly increase in demand for central bank funds.
The bid volume exceeded the BEAC’s fixed offer of CFA800 billion, creating a shortage of CFA103.9 billion. The subscription rate reached 112.9%, indicating that available funds did not cover all requests.
Demand Rises Sharply From Early September
Banks requested CFA806.1 billion in the September 1 operation, slightly above the available amount. Demand increased modestly to CFA806.9 billion in the September 8 auction.
Between September 8 and September 15, total bids grew by CFA97 billion. This represents a 12% jump, according to data published by Business in Cameroon.
The BEAC’s CFA800 billion allocation has failed to meet total bids since September began. The gap between supply and demand widened significantly in the latest trading session.
Monetary Easing Precedes Higher Funding Requests
The BEAC cut its main policy rate to 4.50% on June 29, 2026. The marginal lending facility rate also dropped to 5.75%, reducing the cost of central bank funds.
These rate cuts occurred before the recent surge in liquidity demand. However, current data does not confirm that cheaper rates directly caused the increased borrowing by credit institutions.
Lack of Data on Fund Usage
The BEAC did not specify how banks intend to deploy the additional liquidity obtained. It is unclear whether the funds support lending, cash needs, or securities purchases.
Attributing the rise to back-to-school spending or household lending remains speculative without further evidence. Additional data on bank lending and cash positions is required for a precise assessment.
