BEAC steps up liquidity absorption to further restrict access to credit

Between August 7 and 11, 2023, BEAC, the central bank of CEMAC countries, carried out a liquidity absorption operation. The operation aimed to absorb FCFA400 billion of liquidity from the banking circuit but, FCFA300 billion was transferred by commercial banks. By stepping up its liquidity absorption operations, which now consist in making a recovery offer of FCFA200 billion every week, BEAC intends to further tighten access to bank credit in the Cemac region. This restrictive monetary policy –suspension of liquidity injection operations, intensification of liquidity absorption operations, and multiple increments of the central bank’s key rates– aims at curbing rampant…