CBE Requests EGP45 bln from Banks in 18th Auction of Deposit Operations

The Central Bank of Egypt (CBE) has requested around EGP40 billion domestic surplus liquidity from the banks which are operating in the banking sector in 7-days 18th auction deposit operations with 9.25% interest.

CBE has accepted around 58.4% (EGP45 billion) from the banks for deposit operations in the last Tuesday from the total domestic surplus liquidity provided by the banks and reached EGP77 billion.

The value of domestic liquidity which obtained by CBE from the banks operate in the banking sector attained EGP342 billion through the 17th auction.

CBE has reduced the interest price by1% on the required liquidity to become 9.25% instead of 10.25% , 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.

The total domestic liquidity of the banking sector reached around EGP1.217 trillion at the end of August 2013 according to the latest reports of the CBE, while the value of loans and credit facilities reached EGP550.4 billion at the same period.

CBE started using deposit operations since last April 2013in order to help banks for cutting non-user domestic surplus liquidity.