CBE Withdraws Liquidity from Banks worth EGP 1.058 Trillion

The Central Bank of Egypt (CBE) withdrew liquidity from 31 banks worth EGP 1.058 trillion at an interest rate of 27.75% through the linked deposit mechanism.

31 banks offered bids worth EGP 1.058 trillion on Tuesday, and 100% of the bids submitted by the banks were accepted. The Central Bank will keep the funds until August 27.

On the other hand, the Central Bank’s data revealed that reserve money rose to EGP 1.99 trillion by the end of July by more than EGP 303 billion, in addition to a 29% increase in bank deposits during the same period.

According to a special report by “Al Arabiya Business”, the return on treasury bills ignored the return of foreign requests to buy during the past days, exceeding 29% in yesterday’s 3-month bid, compared to 28.3% in last week’s bid.

This increase in the interest rate on government bids is the highest since the liberalization of the exchange rate last March, after trading at an average of between 26.75 and 27% during the past months.

The Central Bank, on behalf of the Ministry of Finance, requested subscriptions in 3-month treasury bills worth about EGP 35 billion in an auction yesterday, which received subscription requests from banks worth EGP 94.42 billion.