(Business in Cameroon) - On April 22, the Central African Central Bank (Beac) concluded a successful 14-week bond issuance worth CFA50 billion. This move, offering a 2.5% interest rate, effectively withdrew CFA50 billion from the banking system as part of its anti-inflation strategy.

This marked the first time since the bond issuance began in March 2024 that an operation achieved such success. Official data from the central bank indicates oversubscription, with a demand coverage rate of 156%. Banks, holding liquidity, offered a total of CFA78 billion, surpassing the initial target.

Unlike previous operations, which faced insufficient subscriptions or single bids falling short of targets, banks eagerly embraced Beac's bonds on April 22. Notably, three participants engaged in the operation, the highest since March 2024, with a maximum of five expected, as per official sources.

Following increases in benchmark rates, suspension of liquidity injection operations, and intensified weekly liquidity draining operations, Beac's bonds serve as the central bank's new tool to reduce bank liquidity and constrain credit access. This initiative aims to diminish monetary-origin inflation's share within the Cemac region (20%).