Egypt’s central bank Offers 7-Day Repos Worth EGP5 Bln

Egypt Central Bank (CBE) has offered on Tuesday 7-day deposits worth EGP 5 billion to the local banks at interest rates of 10.25% through repurchase agreements (Repos). This comes after a 10-week halt of the Repo operations. Over the last 10 weeks, the CBE had withdrawn deposits worth EGP 140 billion in accordance with the “Auction Portal System”.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. 

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%.

Table below demonstrates the CBE’s Auctions according to Auction Portal System:

Auction’s Date

Amount (EGP Bln)

Total Banks’ Deposits at CBE

02/April/13

14

15.07

09/April/13

23

29.315

16/April/13

18

29.225

23/April/13

20

25.171

30/April/13

18

24.5

07/ May/13

13

19.5

14/ May/13

12

19.625

21/ May/13

10

15

28/ May/13

6

10.350

04/June/13

6

Total

140

187.756

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