Egypt’s central bank withdraws LE 1.033T in liquidity

The Central Bank of Egypt (CBE) withdrew LE 1.033 trillion in liquidity from 26 banks on Tuesday through an open market operation, following its recent policy update to accept bids at an interest rate of 27.75 percent.
 

This follows last week’s operation, where the CBE withdrew LE 1.135 trillion. 
 

The CBE had earlier introduced revised guidelines for its weekly main deposit operations, previously conducted through fixed-rate tenders. 
 

Under the new system, the CBE announces the operation size, and bids are allocated based on the proportion of each bank's submission to the total bids, applying the main operation rate.
 

Effective April 23, 2024, the CBE transitioned from a partial allocation method to a full allotment approach, accepting all bids submitted. 
 

This change aims to align with international standards for managing liquidity surpluses and enhancing monetary policy transmission. Operation results are published on the Central Bank’s official website.
 

The CBE remains committed to balancing liquidity levels to align with its operational goal of stabilizing the average overnight interbank rate around the main operation rate, reflecting the average corridor rate.