Circular No. 47 regarding amending the procedures for accepting bids for the main process of linking weekly deposits

Cairo, April 22, 2024

To the Chairman,

Greetings,

With reference to the rules governing the Main Process (Operation Main) for Open Market Operations conducted by the Central Bank through a fixed-rate tender, where the volume of the operation to be conducted by the Central Bank is announced, and bids are accepted using an allocation method determined by the ratio of the bid amount submitted by the Bank to the total bids submitted, with the main operation rate applied.

Ramy Abou El Naga Monetary Policy Implementation Circular No. (47)

In light of the Central Bank's commitment to following international best practices regarding the management of liquidity surplus in the banking sector and improving the effectiveness of monetary policy decisions, it has been decided to change the bid acceptance method for the Main Deposit Linking Operation (Operation Main) from the allotment method to the full acceptance of all submitted bids (Allotment Full), effective Tuesday, April 23, 2024. The results of each deposit linking operation will be published on the Egyptian Central Bank's website.

The Egyptian Central Bank will continue its liquidity management to ensure balance and consistency with its operational objective, which is to maintain the weighted average overnight interest rate in the interbank transactions market around the main operation rate, which is the corridor average rate.

Please accept our highest regards.