(Business in Cameroon) - Between August 21 and 22, 2023, BEAC, the central bank of CEMAC countries, withdrew CFAF160 billion from the banking system. According to official data, CFAF30 billion was withdrawn on August 21, following an offer to take over CCFA 50 billion of long-dated liquidity. On August 22, it withdrew CFAF130 billion from the system following an operation to take over CFAF150 billion.
The central bank is thus pursuing its liquidity absorption strategy to restrict access to credit and combat inflation, which is forecasted to reach 6.1% this year (twice the community threshold of 3%).
It is worth noting that despite the central bank’s restrictive monetary policy (with repeated increases in key rates, the suspension of liquidity injections, and the intensification of liquidation absorptions) since 2021, inflationary pressures persist in the CEMAC region.
This is understandable with BEAC governor Abbas Mahamat Tolli admitting that only 20% of the inflation is of monetary origin. This means that the restrictive monetary policy implemented by the central bank can have no impact on the remaining 80% of inflation, which is imported and due to internal factors such as climate change.