CBE Withdraws Liquidity from 32 Banks worth EGP 1.119 Trillion

The Central Bank of Egypt (CBE) withdrew liquidity worth EGP 1.119 trillion, Tuesday, in an open market tender from 32 banks, with an interest rate of 27.75%.

CBE obtained liquidity worth EGP 1.250 trillion in today’s open market bid from 30 banks last week, after its recent decision to amend bid acceptance policies.

The Central Bank confirmed that in light of its keenness to follow the best international practices regarding managing surplus liquidity in the banking system and improving the effectiveness of monetary policy decisions, it was decided to change the method of accepting bids for the main process of linking its deposits from the allocation method to the method of accepting all submitted bids.

The central bank had issued new instructions regarding the rules regulating the main process of linking deposits to the open market operations that the Central Bank was conducting by holding a fixed-price auction on a weekly basis.

Accepting bids in an allocation method is determined based on the ratio of the bid submitted by the bank to the total bids submitted and applied to the main process price.