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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Morgan Stanley forecasts Egypt inflation to drop to 15%, interest rate cuts on horizon

Morgan Stanley has projected that Egypt’s inflation rate will fall to between 14 per cent and 15 per cent by the end of the current year, with expectations of interest rate cuts beginning as early as February.

In a recent research note released after a recent visit, the US bank acknowledged the significant improvement in Egypt’s macroeconomic picture since March, but noted that local market participants remain cautious. The report cited concerns about the potential impact of additional fiscal measures, particularly anticipated energy price hikes, on inflation. While local consensus puts year-end inflation between 16 per cent and18 per cent, Morgan Stanley’s forecast is more optimistic. The bank anticipates a cautious interest rate cut cycle by the Central Bank of Egypt (CBE), starting with a 100-200 basis point reduction on February 20th. Looking ahead to 2025, Morgan Stanley projects a total interest rate reduction of 10 percentage points, while local experts predict a less aggressive easing cycle of 6 percentage points.

Attribution: Amwal Al Ghad Arabic

Egypt’s c. bank issues EGP 80b in T-bills

The Central Bank of Egypt (CBE), in coordination with the Ministry of Finance, will offer 80 billion Egyptian pounds in treasury bills (T-bills) on Thursday.

The auction is in two tranches: 181-day T-bills worth 35 billion pounds to mature on 05/08/2025 and 273-day T-bills worth 45 billion pounds to mature on 30/02/2026, as per the statement.

Treasury bills are short-term government debt instruments with maturities ranging from three months to a year.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama

EGP down vs. USD at Wednesday’s close

The Central Bank of Egypt (CBE) reported the average closing exchange rates for the US dollar (USD) against the Egyptian pound (EGP) on Wednesday, January 29, 2025.

According to the CBE’s website, the USD buying rate stood at EGP 50.1817, while the selling rate was EGP 50.2814 per dollar, compared to EGP 50.1551 for buying and EGP50.2551 for selling on Tuesday.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama

Egyptian expats’ remittances surge in ’24 – CBE

Egypt’s remittances from expatriates went up by 47.1 per cent to reach approximately $26.3 billion in the first 11 months of 2024, compared to around $17.9 billion in the same period a year earlier, according to the Central Bank of Egypt (CBE). The surge followed the economic reform measures implemented in March 2024, according to CBE data obtained by Amwal Al Ghad English.

In November alone, remittances soared 65.4 per cent year-on-year (YoY) to nearly $2.6 billion, up from about $1.6 billion in November 2023.

During the July–November period, remittances climbed 77.0 per cent to approximately $13.8 billion, compared to nearly $7.8 billion in the corresponding period of 2023.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama

 

EGP closes high vs. USD on Tuesday – CBE

The Central Bank of Egypt (CBE) reported the average closing exchange rates for the US dollar (USD) against the Egyptian pound (EGP) on Tuesday, January 28, 2025.

According to the CBE’s website, the USD buying rate stood at EGP 50.1551, while the selling rate was EGP 50.2551 per dollar, compared to EGP 50.2011 for buying and EGP 50.3011 for selling on Monday.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser