Egypt’s Central Bank Cuts Its Repo Auction to EGP3 bln Today

Through its ninth repurchase agreements (Repo), Egypt’s Central Bank (CBE) has offered today the local banks cash liquidity worth EGP 3 billion for 7-day maturity at interest rates of 10.25%. Central bank has offered today its lowest auction since the reactivation of the Repo operations last June.

Mr. Amr Youssef – Deputy Of Treasury Sector in Piraeus bank – attributed the CBE’s lower auction at repo system on Tuesday to the current sufficient liquidity enjoyed by the local banks.

This comes after 10-weeks suspension of the Repo operations, whereas, CBE had withdrawn deposits worth EGP 140 billion according to “Auction Portal System”. The Central bank had launched “Auction Portal System” April 2013.

Last March, Egypt’s Central Bank had declared that it shall reintroduce deposit operations to absorb excess liquidity starting April 2nd. CBE had announced also that the deposits shall have 7 days maturity with a fixed annual interest rate of 10.25%.