Yaoundé - 25 October 2020 -

CEMAC: Cameroon, Gabon, and Congo’s public securities were the most sought after in Q2-2020 (BEAC)

CEMAC: Cameroon, Gabon, and Congo’s public securities were the most sought after in Q2-2020 (BEAC)
  • Comments   -   Tuesday, 22 September 2020 14:18

(Business in Cameroon) - In Q2-2020, the treasury bills issued by Cameroon, Gabon, and Congo (to a lesser extent) were the most sought after, according to the quarterly bulletin recently published by the central bank BEAC.

The same source informs that during the period, subscriptions to the treasury bonds issued by Cameroon were the highest (83.8%).

The report further discloses that during the reference period, the bid-to-cover ratio in the CEMAC money market dropped even though treasury bills issuances were oversubscribed.

For instance, the average bid-to-cover ratio on treasury bills fell from 150.5% to 141.3% while that for treasury bonds fell from 112.7% to 76.6% quarter-over-quarter.  “This indicates investors’ preference for short-term securities (treasury bills),” the BEAC comments.

This preference is due to the type of deposits made in banks that are the main investors in the CEMAC money market. Indeed, according to the BEAC, over 70% of bank deposits were overnight deposits, therefore, best suited for short-term investments only.

Brice R. Mbodiam

The Cameroonian subsidiary of the Chinese telecom equipment company Huawei recently concluded the 5th edition of its program "Seeds for the Future," aimed...
The creation of Limited Liability Companies (LLCs) could be further simplified in Cameroon if the country sticks to the priority action plan presented at...
On October 21, 2020, when the second disbursement under the rapid credit facility (aimed at helping countries deal with the coronavirus pandemic) was...
Camair-Co recorded about XAF6 billion of revenue shortfalls in H1-2020, according to an internal document Business in Cameroon had access to. The...

Mags frontpage

Business in Cameroon n92: October 2020

Crowfunding A solution for young entrepreneurs

Serge Esso, rising lobbyist

Investir au Cameroun n102 Octobre 2020

Financement participatif Une solution pour les jeunes entrepreneurs

Serge Esso, le lobbyiste qui monte