Egypt Central Bank Delays Repo, Deposit Operations for 7th Week

For the seventh week in a row, Egypt’s Central Bank (CBE) decides to postpone offering its repurchase agreements (Repo) to local banks. The central bank has not received any requests from local banks for cash liquidity in accordance with the Auction Portal System.

Mr. Amr Youssef – Deputy of Treasury Sector in Piraeus bank – stated that CBE’s repo operations are designated to add liquidity to the banking sector drained of funds; while the deposit operations were re-introduced as a tool to absorb excess liquidity.

Mr. Youssef added that postponing raising repo and deposit operations for the seventh week reflects the state of stability and balance enjoyed by the Egyptian banking sector.

The central bank offered its last repo operations by the end of last July.

The CBE announced last March that it plans to re-introduce deposit operations as a tool to absorb excess liquidity starting April 2nd 2013.it further noted that the deposits would have 7 days maturity with a fixed annual interest rate of 10.25%.