The Bank of Central African States (BEAC) recently offered CFA320 billion in liquidity to commercial banks. However, the offer attracted little interest, with banks subscribing to just 29.8% of the amount, taking up only CFA95.6 billion.

This marked a notable low in interest since BEAC resumed its liquidity injection operations in June 2024, following a year-long suspension. The previous lowest subscription rate was recorded on November 5, for an offer of the same amount.

When BEAC reintroduced liquidity injections in June 2024, commercial banks initially showed high interest, often requesting as much as CFA500 billion weekly. This prompted the central bank to steadily increase its liquidity offerings, from CFA50 billion in June to CFA350 billion by mid-October 2024.

However, demand began to drop in late October. The amount offered was reduced to CFA240 billion but later raised to CFA320 billion on November 5, despite banks expressing lower needs, averaging CFA250 billion. By early November, demand had fallen below CFA200 billion and eventually dipped under CFA100 billion by the end of the month.

Source: Sbbc