CBE withdraws EGP1.2t in open market operation auction

The Central Bank of Egypt (CBE) withdrew nearly 1.2 trillion Egyptian pounds from the market on Tuesday through an open market operation auction. This move aimed to influence interest rates and manage excess liquidity in the banking system.

Bids from 26 banks were accepted at an interest rate of 27.750 percent. This follows a recent change in bid acceptance policies implemented by the CBE.

To enhance its monetary policy tools, the central bank has revised its open market operations. Since April 23, the CBE has adopted a full allotment system, allowing all eligible banks to participate in weekly auctions. This 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