The Central Bank of Egypt withdrew liquidity worth EGP 226.7 billion today through the open market tender from 18 banks at an interest rate of 24.5%. Last year, the Central Bank issued instructions regulating the main deposit linkage process for open market operations conducted through a fixed-price weekly auction. The Central Bank announced the operation size and accepted bids based on an allocation method determined by the ratio of the bank’s bid to the total bids, applying the main operation price.

The Central Bank confirmed that, aiming to follow best international practices regarding surplus liquidity management and enhancing the impact of monetary policy decisions, it decided to change the bid acceptance method from allocation to accepting all submitted bids. Results of each deposit linkage operation will be published on the Central Bank of Egypt’s website.

The Central Bank manages liquidity to maintain balance and ensure consistency with its operational goal of preserving the weighted average overnight interbank rate around the main operation price, which represents the corridor average rate.