The Central Bank of Central African States (Beac) has commenced its fourth round of bond issuance, aiming to address liquidity concerns within the banking sector, this according to the business website “Business in Cameroon ». With three bond issuances scheduled from April 29 to May 13, Beac aims to withdraw a total of CFA 150 billion from commercial banks’ reserves.
Previous rounds of bond issuance have yielded mixed results. However, the latest offer on April 22 saw a remarkable success, boasting a coverage rate of 156%. This success underscores the effectiveness of Beac’s strategy in managing liquidity within the region.
In light of increasing inflationary pressures, Beac has taken strategic measures, including raising key interest rates and suspending liquidity injection operations. These actions are geared towards curbing inflation in the Cemac zone and maintaining monetary stability.
It is reported that, the bond issuance serves as a crucial tool for Beac to tighten bank liquidity and regulate credit access, ultimately contributing to the economic stability of the region. As the fourth round progresses, stakeholders will closely monitor its impact on the financial landscape of the Central African States.
