The Central Bank of Egypt has announced its acceptance of deposits banks worth EGP75 bn. This comes as part of

CBE Accepts Deposits from 19 Banks Worth EGP75 Bn

6/20/2023 1:53:00 PM

The Central Bank of Egypt has announced its acceptance of deposits from banks worth EGP75 bn. This comes as part of linked deposits mechanism that it introduces every week to control the money supply within the market, with the aim of keeping inflation rates within acceptable limits.

In its weekly report on deposit operations at CBE, issued today, the bank revealed that 19 banks submitted requests to link deposits amounting to EGP 307.35 bn. The central bank approved EGP75 bn, at a allocation rate of 24.40%.

Linked deposits mechanism is one of the open market tools used to manage and absorb liquidity in order to control inflation rates.

It is worth mentioning the decision of the Monetary Policy Committee of the Central Bank of Egypt in its recent meeting last Thursday to maintain interest rates for overnight deposit and lending at 18.25%, 19.25%, and the main operation rate at 18.75%. Additionally, the credit and discount rates were kept unchanged at 18.75%.