Today, Egypt Central Bank (CBE) has offered 7-day maturity worth EGP 16 billion to the local banks at interest rates of 10.25% through its third repurchase agreements (Repos) since its reactivation 2 weeks ago so as to provide liquidity. It is worth noting that last Tuesday, CBE had auctioned EGP 5 billion for the banks active in the country’s banking sector.
This comes after 10-weeks suspension of the Repo operations, whereas, CBE had withdrawn deposits worth EGP 140 billion according to the “Auction Portal System”. The Central bank had launched “Auction Portal System” April 2013.
Last March, Egypt’s Central Bank had declared that it shall re-introduce deposit operations to absorb excess liquidity starting April 2nd . CBE had also announced that the deposits shall have 7 days maturity with a fixed annual interest rate of 10.25%.