The rise in interbank transactions contrasts with the decline in injections of liquidity from the Central African money market. Deferred money market interventions to better appreciate the impact of COVID-19 on the CEMAC banking system.

Money market activities have experienced huge fluctuations during the first quarter of the year in all the countries of the Economic and Monetary Community of Central Africa (CEMAC) informs the Bank of Central African States (BEAC). The Central Bank indicated through the monetary bulletin of which Financial Afrik was able to obtain a copy that the Coronavirus pandemic caused adjustments, which did not allow certain operations to be carried out on the banking ecosystem of the sub-region. Interbank transactions increased to reach 149.4 billion FCFA in March, against 114.7 billion FCFA in February, which represents an increase of 30.3%, after a drop of 26.94 % a month earlier. Conversely, the average outstanding amount of liquidity injections on the money market by the BEAC fell to 251.8 billion FCFA in March against 254.3 billion FCFA a month earlier. .

During the period considered, the public securities market was more dynamic than the previous month for a total value of 262.3 billion FCFA in March compared to 168 billion FCFA in February, while the interest rates practiced fluctuated between 3.25 % and 7.50%. In addition, the activities of this money market compartment were characterized by the increase in the volume of the main liquidity recovery operation and the modification of the main BEAC interest rates by the Monetary Policy Committee (CPM). To cope with the difficult economic environment reinforced by the health crisis linked to the Coronavirus pandemic, the CPM of the BEAC decided last March to review certain main key rates. In the process, with regard to lending rates, the interest rate on tenders (TIAO) was set at 3.25% instead of 3.50%, while the marginal lending facility rate (TFPM) is changed to 5.00% instead of 6.00%

Regarding the interest rate on bank investments, the deposit facility rate was set at 0.0%.

However, the remuneration rates for public deposits remained unchanged as follows: the interest rate on public investments in respect of the reserve fund for future generations (TISPPο) remains at 0.40%; the interest rate on public investments under the budgetary revenue stabilization mechanism (TISPPı) remains at 0.05%; the Interest rate on public investments for special deposits (TISPP₂) is still 0.00% while the minimum deposit rate set by the BEAC to protect and encourage domestic savings remained at 2.45%. this month of March, no main liquidity injection operation was organized by the Central Bank even if, in addition, three liquidity recovery operations for a single amount of 70 billion were organised, while the outstanding monthly average stood at 36 billion FCFA. In view of the impact of the current health crisis, the BEAC indicated that it had not carried out certain interventions on the money market under its main operation in order to better assess the effects of COVID-19 on the liquidity of the CEMAC banking system.