Egypt’s CBE pulls EGP967.450b in OMO
The Central Bank of Egypt (CBE) conducted an open market operation (OMO) on Tuesday, withdrawing 967.450 billion Egyptian pounds from the banking system. This action reflects the CBE’s ongoing liquidity management efforts and its aim to influence market interest rates.
Twenty-four banks participated in the auction, with bids accepted at an interest rate of 27.75 per cent, in line with the CBE’s updated bid acceptance policies.
Throughout 2024, the CBE has implemented significant reforms to its OMO framework to enhance monetary policy effectiveness. A key change was the adoption of a full allotment system in April 2024, allowing all eligible banks to participate in weekly liquidity auctions. This shift from the previous allocation-based system provides greater flexibility and improves liquidity management across the banking sector.
These ongoing refinements to its monetary policy tools demonstrate the CBE’s commitment to economic stability and supporting the sustainable growth of the banking system.
Attribution: Amwal Al Ghad English