Egypt c.bank pulls EGP1.145t from market in OMO auction

The Central Bank of Egypt (CBE) withdrew on Wednesday 1.145 trillion Egyptian pounds from the market through an open market operation (OMO) auction, aiming to manage liquidity and influence interest rates within the banking system.

The auction saw participation from 27 banks, with bids accepted at an interest rate of 27.75 percent, reflecting recent adjustments in the central bank’s bid acceptance policies.

As part of its ongoing efforts to refine its monetary policy framework, the CBE revamped its OMO mechanism earlier this year. Since April 23, the bank has adopted a full allotment system, allowing all eligible banks to participate in weekly auctions. This shift from the previous allocation-based system offers increased flexibility and efficiency in managing market liquidity.

Attribution: Amwal Al Ghad English