Egypt’s CBE withdraws EGP 964.4b in OMO auction

The Central Bank of Egypt (CBE) conducted an open market operation (OMO) auction on Tuesday, withdrawing 964.400 billion Egyptian pounds from the banking system. The move is part of the CBE’s strategy to manage liquidity and regulate interest rates within the market.

A total of 27 banks participated in the auction, with bids accepted at an interest rate of 27.75 per cent, reflecting the CBE’s updated bid acceptance policies.

In 2024, the CBE overhauled its OMO framework to enhance the efficiency of its monetary policy. As of April 23, the bank adopted a full allotment system, allowing all eligible banks to participate in weekly liquidity auctions. This shift from the previous allocation-based approach has introduced greater flexibility and improved liquidity management across the banking sector.

The changes underline the CBE’s commitment to refining its monetary tools to stabilise the economy and support the banking system.

Attribution: Amwal Al Ghad English

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