Yaoundé - 13 April 2024 -

Beac targets $394mln withdrawal from commercial banks to curb CEMAC inflation

Beac targets $394mln withdrawal from commercial banks to curb CEMAC inflation
  • Comments   -   Wednesday, 03 April 2024 15:42

(Business in Cameroon) - The Bank of Central African States (Beac) initiated a liquidity withdrawal operation on April 2, 2024, aiming to pull CFA230 billion ($394 million) from commercial banks. This move marks one of the central bank's most significant attempts to reduce banking liquidity since the start of 2024.

This operation to drain funds from the region's banks aligns with the restrictive monetary policy adopted to fight soaring inflation across the CEMAC region. According to Beac, the purpose of these withdrawals is to limit economic agents' access to financing, thereby combating the monetary origin of inflation.

Initially capped at CFA50 billion for several years, the central bank's liquidity withdrawal operations have gradually increased in response to rising inflation rates within the region. Consequently, the amount Beac now seeks to remove from the banking system is nearly five times the initial figure.

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