Egypt’s c.bank pulls EGP792b in open market operation auction

The Central Bank of Egypt (CBE) withdrew 792.050 billion Egyptian pounds from the banking sector on Tuesday through an open market operation auction. The move is part of the central bank’s ongoing strategy to regulate interest rates and manage surplus liquidity within the financial system.

A total of 26 banks submitted successful bids at an interest rate of 27.75 per cent, reflecting recent adjustments in the CBE’s policy for bid acceptance.

In a bid to strengthen its monetary policy framework, the CBE has overhauled its open market operations. Since April 23, it has adopted a full allotment system, enabling all qualified banks to fully participate in weekly auctions. This replaces the earlier allocation-based approach.

These measures underline the CBE’s commitment to ensuring effective liquidity management and maintaining stability in interbank interest rates.

Attribution: CBE data