The Central Bank of Egypt (CBE) has withdrawn a significant EGP 1.369 trillion through its open market operation, engaging 25 banks.
This move follows the bank's recent policy shift, offering a 27.7% interest rate on accepted bids. This marks a sharp rise from the EGP 992.450 billion withdrawn in the previous week.
In line with its ongoing monetary policy reforms, the bank has changed its approach for the main deposit operation, shifting from a selective bid allocation system to a full allotment method. This adjustment, effective from April 2024, aims to enhance liquidity management and ensure that all bids are accepted, providing better transmission of policy actions to the banking sector.
The central bank reaffirmed that these measures are designed to ensure liquidity stability and maintain the interbank overnight rate in line with its main operation corridor, which is crucial for meeting its operational targets.
