CBE Accepts EGP55 bln at Deposit Operations Auction on Tuesday

The Central Bank of Egypt (CBE) accepted on Tuesday around EGP 55 billion of domestic surplus liquidity from local banks in an auction for deposit operations with 9.75% interest and 7-day maturity.

Thus, the total deposits raised by the central bank under this mechanism that was introduced on April 2, 2013 rose to EGP 2.865 trillion.
The central bank aims through this system to absorb excess liquidity in the local market. The central bank is expected to keep key interest rates unchanged on Wednesday.  
In its meeting held on May 29, 2014, CBE’s Monetary Policy Committee (MPC) had decided to keep the overnight deposit rate, overnight lending rate and the rate of the CBE’s main operation unchanged at 9.75%, 9.25% and 10.25% respectively.