Egypt c.bank withdraws EGP 1.24t via open market operation auction

The Central Bank of Egypt (CBE) successfully withdrew 1.240 trillion Egyptian pounds from the market on Tuesday through an open market operation auction. This strategic move was designed to influence interest rates and effectively manage excess liquidity within the banking system.

Bids from 24 banks were accepted at an interest rate of 27.75 percent, following a recent adjustment in bid acceptance policies. To further strengthen its monetary policy toolkit, the central bank has revised its open market operations. Since April 23, the CBE has implemented a full allotment system, enabling all eligible banks to participate in weekly auctions. This significant change replaces the previous allocation-based system.

These measures underscore the CBE’s ongoing commitment to effectively managing liquidity and maintaining interest rate stability in the interbank market.

Attribution: CBE