BEAC lowers the reserve requirements for banks by 50%
The move is designed to boost the CEMAC's economy.The Central Bank of Central African States (BEAC) has lowered by 50 per cent the reserve requirements for commercial banks.
"We are releasing between 500 and 600 billion CFA francs (between €760 million and €910 million) in cash to banks. We hope that they will use it to finance the economy," said BEAC governor Lucas Abaga Nchama during a monetary policy committee held on April 6th.
This marks BEAC's latest effort to stimulate the struggling economies of the Economic and Monetary Community of Central Africa (CEMAC), whose growth for 2016 is projected to reach only two per cent, while this figure stood at around five per cent in 2014.
The region has been hit by the recent fall in crude prices, due to the fact that it is one of the continent's largest oil producing region.
In January, the Development Bank of Central African States (BDEAC) received an envelope of 400 billion CFA francs from the BEAC to finance development projects in the CEMAC region and improve the regional economic environment.