Egypt Central Bank (CBE) has offered on Tuesday 7-day deposits worth EGP 8 billion to the local banks at interest rates of 10.25% through its second repurchase agreements (Repos) since reactivation.
Over the last 10 weeks, the CBE had withdrawn deposits worth EGP 140 billion in accordance with the “Auction Portal System”. The Central bank has started adopting the “Auction Portal System” since April 2013. The CBE offered last Tuesday 7-day deposits worth EGP 5 billion in accordance with the Repo system.
CBE pointed out that Repo shall be reinstated according to its vision of what is necessary for the liquidity situation in the banking system. Accordingly, the CBE will re-activate its Repo operations in order to provide the necessary liquidity for the banks working for the Egyptian banking system.
Last March, Egypt’s Central Bank had declared that it shall start deposits operations, for the 7-days deposits so as to make use of its excess liquidity, starting from April 2nd with fixed annual rates of 10.25%.