CBE Requires EGP32 bln Deposit Operations from Banks Today

The Central Bank of Egypt (CBE) has demanded from the banks operating in the banking sector on Tuesday EGP 32 billion in the 15th auction seven-day deposit operations at an interest rate of 9.25%.

This comes after CBE had re-introduced deposit operations in the last April to absorb excess liquidity of the local banks, as CBE has received from the banks EGP 225 billion over 14auctions.

CBE has reduced the price of the required liquidity interest with 1% to reach 9.25% instead of 10.25%.  After the decision of the monetary policy to reduce the interest rate on the deposit and lend for one night by 50%.

The total local liquidity of the banking sector are around EGP1.32trillion at the end of July 2013, compared to EGP1.29trillion at the end of June 2013, move up by EGP20.04billion (1.5%) according to the latest reports of CBE.