Central Bank of Egypt withdraws EGP 533b in open market operation

The Central Bank of Egypt (CBE) conducted an open market operation (OMO) on Tuesday, withdrawing 533.050 billion Egyptian pounds from the banking system. This move is part of the CBE’s ongoing efforts to effectively manage liquidity and regulate interest rates within the market.

A total of 26 banks took part in the auction, with bids accepted at an interest rate of 27.75 per cent, reflecting the CBE’s updated bid acceptance policies.

In 2024, the CBE implemented significant reforms to its OMO framework, aiming to enhance the efficiency of its monetary policy. Notably, the bank adopted a full allotment system in April 2024, enabling all eligible banks to participate in weekly liquidity auctions. This shift from the previous allocation-based approach has introduced greater flexibility and improved liquidity management across the banking sector.

These changes underscore the CBE’s commitment to continually refine its monetary policy tools to stabilise the economy and support the sustainable growth of the banking system.

Attribution: Amwal Al Ghad English

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