The Central Bank of Egypt (CBE) withdrew EGP 1.033 trillion in liquidity from 26 banks on Tuesday through an open market operation, following its recent decision to adjust the acceptance policies for bids at an interest rate of 27.75%. 

 

This move follows a similar operation last week, where the central bank withdrew EGP 1.135 trillion. 

 

Earlier, the CBE issued new guidelines for the main deposit operation process, which had been conducted weekly through a fixed-rate tender.

The tender announcement would specify the size of the operation, with bids being allocated based on the percentage of each bank's bid relative to the total bids received, applying the main operation rate. 

 

To align with international best practices in managing liquidity surpluses and improve the effectiveness of monetary policy, the CBE has changed the bid acceptance method for its main deposit operations from a partial allocation method to full allotment.

 

This adjustment, which took effect on April 23, 2024, allows for all submitted bids to be accepted. Results from each operation will be published on the Central Bank's website. 

 

The CBE continues to manage liquidity with the aim of maintaining consistency with its operational goal, which is to stabilize the average overnight interbank rate around the main operation rate (the corridor average rate).