Thndr Claps
  • U.S.
  • Egypt
  • Saudi
  • Thinkers
  • Arabic
No Result
View All Result
Thndr Claps

Thndr Claps » Thndr Thinkers💭 » Hany Genena » Meaning of Liquidity Withdrawal

Meaning of Liquidity Withdrawal

by Thndr Thinker
September 6, 2022

Withdrawing liquidity is only possible through depositing liquidity from banks in the CBE.

Based on this simple principle, determine whether the following sentences are true or false with an explanation:

1. The Egyptian government borrowed EGP 61 billion in the last tender to withdraw liquidity
False. Individuals and companies loan funds to the government and the government will pump it into the state through current and investment spending.

2. The Egyptian government borrowed EGP 61 billion and deposited EGP 30 billion into the consolidated account with the CBE. (Cash was withdrawn = EGP 30 billion)
True. Cash transfer to the CBE = liquidity withdrawal.

3. A certificate of 18% was offered for a year to withdraw liquidity
False. Even if the cash goes from the depositor’s house in the form of a banknote to the bank, the money deposited in the certificate is available for lending by the bank and thus pumped back into the economy. In order for it to be classified as a cash withdrawal, the proceeds of the certificates must be deposited with the Central Bank.

4. The CBE withdraws 100 billion pounds through the weekly bid.
True. The cash was transferred from the banks to the CBE for a week, so it cannot be loaned during this period.

Summary
Liquidity is not withdrawn unless it is deposited with the Central Bank. The central bank is the one that issues and withdraws liquidity. Transfers from an individual to an individual or from an individual to a government or from an individual to a bank are nothing but a cash exchange and not a cash withdrawal.

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related Posts

Don’t Worry about Evaluating Stocks
Thndr Thinkers💭

Don’t Worry about Evaluating Stocks

by Thndr Thinker
October 11, 2022
Intrinsic Value
Thndr Thinkers💭

Intrinsic Value

by Thndr Thinker
October 6, 2022
International Monetary System – Part ll
Thndr Thinkers💭

Foreign assets and liabilities of the banking sector

by Thndr Thinker
October 5, 2022
How to spot worth-buying stocks?
Thndr Thinkers💭

How to spot worth-buying stocks?

by Thndr Thinker
October 5, 2022
Notes for choosing a company to invest in
Thndr Thinkers💭

Notes for choosing a company to invest in

by Thndr Thinker
October 3, 2022
5 Indicators To Look For In A Company When Choosing Your Investments
Thndr Thinkers💭

5 Indicators To Look For In A Company When Choosing Your Investments

by Thndr Thinker
October 2, 2022

Website

Community

Blog

Learn

© Thndr. All rights reserved

No Result
View All Result
  • U.S.
  • Egypt
  • Saudi
  • Thinkers
  • Arabic

Disclaimer: Thndr does not provide investment advice, individual investors are responsible for their own decisions or can seek independent advice. The value of investments can go up and down. Thndr is a trading name of Thndr Securities Brokerage which is authorised and regulated by the Financial Regulatory Authority (FRA). Registered in Egypt (no. 804)..© Thndr. All rights reserved

 

Hello👋 We want you to be able to express your opinions on anything and everything finance and economics related to the Egyptian and US markets.

This is why we introduced Thndr Thinkers💭

Let’s go through some housekeeping notes before you jump into publishing your article to all Thndr Claps readers!

Type of Content📝 We want to see market-relevant content that shows good analysis, please! Base your articles on facts 

Don’t be shy, explain🗣 Flex your knowledge to us, and we’ll share it with all the readers!

Be Original🙏 Please don’t copy. No one likes a copycat. All submissions are welcome as long as they’re yours 

Make your title attractive🤩 A title is like the cover of your book. Attractive enough to make you look at the book but also clear enough to tell you what the book is about.

Clean🧹 We’re all humans and we all make mistakes. But please try and clean up the article so it’s clear for all the readers 

No promotional content🚫 We don’t publish promotional content.

Any questions about becoming a Thndr Thinker? Email thndrclaps@thndr.app and we’d be happy to help!

Normally, your article will be published within 24 hours of submission (if you followed the guidelines)