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1, June 2024
BEAC initiates new bond issuance to withdraw CFA150bn from banking system 0
On May 27, 2024, the Central Bank of Central African States (BEAC) successfully withdrew CFA41 billion (out of the targeted CFA50 billion) from the CEMAC banking system. This liquidity withdrawal was achieved through the issuance of bonds with a maturity of 28 days, offering a 3.5% return.
This marks the first phase of a series of three operations, with the central bank aiming to withdraw a total of CFA150 billion. Two additional bond issuances, with a maturity of 14 days and a 2.5% return, are scheduled for June 3 and 10, 2024, as per the calendar released by the central bank.
Following the increase in benchmark interest rates, suspension of liquidity injection operations, and intensified weekly liquidity withdrawal operations, BEAC bonds represent the new tool in the central bank’s strategy to deplete bank reserves and restrict access to credit. This move is aimed at reducing the portion of inflation originating from monetary sources within the CEMAC region.
Source: Business in Cameroon