The Central Bank of Egypt (CBE) has withdrawn a record EGP 1.369 trillion in excess liquidity from the banking system through its weekly fixed-return deposit auction, according to data from the CBE.

In the latest auction, 25 banks participated, with an interest rate of 27.75% applied to the weekly deposits.

This significant liquidity withdrawal follows a continued rise in Egypt's inflation, with the annual inflation rate in urban areas reaching 26.5% in October, up from 26.4% in September. This marks the third consecutive monthly increase in inflation.

The CBE’s liquidity absorption mechanism is part of its broader monetary policy aimed at controlling inflationary pressures.

By reducing excess liquidity in the market, the central bank seeks to curb spending and stabilize prices, helping to manage inflation in a challenging economic environment.

© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).