CBE mopps up EGP933.550b to manage liquidity

The Central Bank of Egypt (CBE) withdrew 933.550 billion Egyptian pounds from the market on Tuesday through an open market operation. The move was aimed at influencing interest rates and managing excess liquidity in the banking system.

Bids from 27 banks were accepted at an interest rate of 27.75 per cent, following a recent change in bid acceptance policies.

To enhance its monetary policy tools, the CBE has revised its open market operations. Since April 23, the Egyptian central bank has implemented a full allotment system, allowing all eligible banks to participate in weekly auctions. This approach replaces the previous allocation-based system.

These measures are part of the CBE’s ongoing efforts to effectively manage liquidity and maintain interest rate stability in the interbank market.

Attribution: CBE data