Egypt’s c.bank mopps up EGP1.3t in open market operation auction

The Central Bank of Egypt (CBE) withdrew a significant 1.294 trillion Egyptian pounds from the banking sector on Tuesday through an open market operation auction. This move aligns with the CBE’s strategy to manage surplus liquidity and regulate interest rates within the financial system.

The auction saw 25 banks submitting successful bids at an interest rate of 27.75 per cent, reflecting recent adjustments to the CBE’s bid acceptance policies.

Since April 23, the CBE has adopted a full allotment system for open market operations, allowing all eligible banks to fully participate in weekly auctions. This replaces the previous allocation-based system and underscores the bank’s focus on enhancing its monetary policy framework.

These measures highlight the CBE’s commitment to effective liquidity management and interbank interest rate stability, both critical for supporting economic growth and maintaining financial system resilience.

Attribution: CBE