Egypt's central bank withdrew 740.850 billion Egyptian pounds in excess liquidity from 22 banks during its latest open market operation on Tuesday. The Central Bank of Egypt (CBE) accepted all bids at a fixed interest rate of 25.5 per cent, following a recent policy shift aimed at enhancing monetary policy effectiveness and aligning market rates with its key operational target. The new framework, which came into effect on April 23, 2024 replaces the previous allocation method that distributed liquidity based on banks' proportional bids. The CBE now pre-announces the size of each operation and accepts all eligible offers at the set rate. The central bank said the changes are in line with international best practices and are designed to improve liquidity management in the banking system. The CBE added that it will continue to manage liquidity to ensure interbank overnight rates remain in line with its policy corridor average. Attribution: Amwal Al Ghad English Download
