Egypt’s c. bank offers EGP 100b fixed-return deposits

The Central Bank of Egypt (CBE) on Tuesday announced it has auctioned fixed-rate deposits for a seven-day term, with a total value of 100 billion Egyptian pounds, at a rate of 27.75 per cent.

The bank specified that these fixed-return deposits are due on March 26, 2024, and the return amount will be 150 billion Egyptian pounds.

Fixed-rate deposits are part of the open market operations (OMOs) mechanism utilised by the central bank to manage the banks’ excess liquidity.

The CBE’s Special Monetary Policy Committee delivered on March 6 its biggest-ever interest-rate hike for the overnight deposit and lending rates and the central bank’s main operation rate by 600 basis points, to reach 27.25 per cent, 28.25 per cent, and 27.75 per cent, respectively. Additionally, the discount and credit rates were increased by 600 basis points to 27.75 per cent.