Egypt's Central Bank (CBE) requested on Wednesday 70 billion Egyptian pounds of domestic surplus liquidity from local banks in the 57th auction for Deposit Operations with 9.75% interest and 7-day maturity. This auction is the highest since the approval of mechanism early April 2013, as it recorded the highest number by CBE worth EGP65 billion 29 banks operating in banking sector reviewed on CBE surplus local liquidity with EGP134.64 billion in the auction of today, the bank has accepted EGP70 billion by allocating 51.99%. Last week, CBE accepted around EGP 65 billion liquidity from banks, so the total number of deposit will be increased to EGP2.375 trillion in the 57th auction. CBE approved to use the local surplus liquidity for banks which do not grant loans for investors as result of crises that passed by the country and which contributed in reducing the borrowing rates. In its meeting held on May 29, 2014, CBE's Monetary Policy Committee (MPC) had decided to keep the overnight deposit rate, overnight lending rate and the rate of the CBE's main operation unchanged at 8.25%, 9.25% and 8.75% respectively. The discount rate was also kept unchanged at 8.75%, according to the central bank's website.
