BEAC projects money supply increase, growth relapse.

The projections were arrived at Monday June 29 in Yaounde. This was during the second ordinary session of the MPC of BEAC. The Governor of BEAC, Yvonne Sana Bangui, chaired deliberations.

In a release sanctioning discussions, the MPC indicated that: “By December 31, 2026, the money supply is expected to increase by 13.1% and foreign exchange reserves in months of goods and services imports would amount to 4.72 months, up from 4.12 months in 2025”.

The Committee also indicated that the external coverage ratio of reserves could hit 70.7% this year up from 65.2% in 2025.

According to  Sana Bangui, the projected increase in money stock is based on the increase in revenue from the sale of petroleum products, consolidation of foreign reserves and moves in countries such as Gabon that have repatriated reserves of national institution.

In January this year, Gabon’s Ministry of Economy, Finance, Debt and Participation instructed the repatriation of Site Restoration Funds, of the Gabon Oil Company, GOC. 

The money that was housed abroad had as at December 31, 2025 been valued at 270 million US dollars (approximately 155 billion FCFA) .

On other sub regional specifics, the MPC, the release which sanctioned Monday’s meeting noted, sanctioned a general hike in price which will still be low the standard of CEMAC. It talked of an annual inflation rate of 2.4 % as against 2.1 % in 2025. 

Budget balance deficit, the note indicated, will decline from 3.7 % of Gross Domestic Product, GDP in 2025 to 1.9 % in 2026, grants not inclusive.

On current account deficit, including official grants, the MPC put the rate at 2.9% of GDP in 2026. This is down from 4.0% of GDP last year. The forecasts, the MPC disclosed, are based on projections which the services of BEAC made in May this year.

A release which Sana Bangui issued at the end of Monday’s discussions reviewed the global economic outlook based on the International Monetary Fund, IMF’s April 2026 update.

It cites the IMF as having projects a decline in growth from 3.4% in 2025 to 3.1% in 2026 due to global geopolitical tensions.

Key interest rates adjusted 

One of the key decisions of the MPC after Monday’s deliberations was the lowering of some interest rates. Among them is the tender rate from 4.75% to 4.50%; the Marginal Lending Facility Rate was adjusted from 6.25% to 5.75%. It is the minimum below which a bank is not permitted to lend money.

The Compulsory Reserve Coefficients is now at 6.50% down from 7.00% on sight liabilities and 4.00% up from 4.50% on Term Liabilities. It is the percentage of a bank’s deposit that must be kept as reserve.

The Deposit Rate which is the interest financial institutions pay on cash deposit of account holders was maintained at zero percent. 

Speaking during a press conference after deliberations, Sana Bangui reiterated the commitment of BEAC to ensure monetary stability, inclusive development and growth across the sub region. 

He stated that, the central Bank remains open to finance major development projects to ensure that the desired development of CEMAC member states sees the light of day.

This article was first published in The Guardian Post Edition No:3834 of Wednesday July 01, 2026