Egypt’s CBE withdraws EGP 1.145t in open market operation

The Central Bank of Egypt ( (CBE) withdrew 680.300 billion Egyptian pounds from the market on Tuesday through an open market operation (OMO) auction. This move is aimed at managing liquidity and influencing interest rates within the banking system.

The auction saw participation from 30 banks, with bids accepted at an interest rate of 27.75 percent. This rate reflects recent adjustments in the CBE’s bid acceptance policies.

Earlier this year, the CBE revamped its OMO mechanism as part of its ongoing efforts to refine its monetary policy framework. Since April 23, the bank has adopted a full allotment system, allowing all eligible banks to participate in weekly auctions. This shift from the previous allocation-based system offers increased flexibility and efficiency in managing market liquidity.

Attribution: Amwal Al Ghad English