Egypt c.bank pulls EGP 1.369t in open market operation auction

The Central Bank of Egypt (CBE) conducted an open market operation auction on Tuesday, withdrawing 1.369 trillion Egyptian pounds from the market. The move is aimed at managing excess liquidity and influencing interest rates within the banking system.

The auction saw bids accepted from 25 banks at an interest rate of 27.75 per cent, following recent updates to the bank’s bid acceptance policies.

As part of its ongoing efforts to enhance monetary policy tools, the CBE revised its approach to open market operations. Since April 23, the central bank has adopted a full allotment system, enabling all eligible banks to participate in weekly auctions, replacing the previous allocation-based system.

These measures underline the CBE’s commitment to maintaining effective liquidity management and ensuring interest rate stability in the interbank market.

Attribution: CBE