CBE Requests EGP50 bln from Banks in 20th Auction of Deposit Operation

The Central Bank of Egypt (CBE) has demanded around EGP50 billion domestic surplus liquidity from the banks which are operating in the banking sector in 7-days 20th auction deposit operations with 8.75% interest.

CBE has accepted around EGP45 billion from the banks in the 19th auction for deposit operations in the last Tuesday from the total domestic surplus liquidity provided by the banks.

The value of domestic liquidity which obtained by CBE from the banks operate in the banking sector attained EGP432 billion through the 19th auction.

CBE started to work with the deposit operation since last of April to help the banks in order to cut the non-user domestic surplus liquidity in the light of the continuing raising of deposits’ volume in banks.

CBE has reduced the interest price on the required liquidity to become8.25% ,9.25%  and 8.75%  respectively after the decision of the Monetary policy committee (MPC) to cut the interest rate on the deposit and lending for one night by 50 percentage points.

MPC also decided to reduce the price of credit and debit by 50 percentage points to become at the level of 8.75%.