Egypt’s CBE withdraws EGP546.8b in open market operation auction

The Central Bank of Egypt (CBE) withdrew 546.800 billion Egyptian pounds from the market on Tuesday through an open market operation auction, a move designed to manage liquidity and influence interest rates within the banking system.

The CBE accepted bids from 23 banks at an interest rate of 27.75 per cent, reflecting the bank’s recent shift in bid acceptance policies.

To enhance its monetary policy effectiveness, the CBE has revised its open market operations. Since April 23rd, the bank has adopted a full allotment system, allowing all eligible banks to participate in weekly auctions. This replaces the previous allocation-based system, providing broader access to liquidity management tools.

These actions are part of the CBE’s ongoing strategy to effectively control liquidity and stabilise interest rates in the interbank market, contributing to overall financial stability.

Attribution: Amwal Al Ghad English