Egypt c.bank withdraws EGP1.210t in open market operation auction

The Central Bank of Egypt (CBE) withdrew 1.210 trillion Egyptian pounds from the market on Tuesday through an open market operation auction. The move aims at influencing interest rates and managing excess liquidity in the banking system.

Bids from 28 banks were accepted at an interest rate of 27.75 per cent, following a recent change in bid acceptance policies.

To enhance its monetary policy tools, the central bank has revised its open market operations. Since April 23, the CBE has implemented a full allotment system, allowing all eligible banks to participate in weekly auctions. The move replaces the previous allocation-based system.

These measures are part of the CBE’s consistent efforts to effectively manage liquidity and maintain interest rate stability in the interbank market.

Attribution: CBE data