Cairo, Egypt – The Central Bank of Egypt (CBE) withdrew 1.135 trillion Egyptian pounds from the banking sector on Tuesday through an open market operation auction, continuing its efforts to manage surplus liquidity and regulate interest rates within the financial system.
This week’s auction saw 26 banks submitting successful bids, with the interest rate set at 27.75%. This reflects recent changes in the CBE’s bid acceptance policies, which aim to fine-tune liquidity management and ensure stable financial conditions. The move follows last week’s operation, where the CBE withdrew 792.05 billion pounds through a similar auction process.
Since implementing a full allotment system for open market operations on April 23, the CBE has allowed all eligible banks to fully participate in weekly auctions. This replaces the previous allocation-based system, enhancing transparency and access to monetary policy tools.
These steps highlight the CBE’s commitment to maintaining effective liquidity management and stabilizing interbank interest rates, both of which are essential for supporting Egypt’s economic stability and long-term growth.
