Egypt is set to offer one-year term US-dominated treasury bills (T-bills) on Wednesday with a total amount of $975 million, the Central Bank of Egypt (CBE) announced on Monday.
In February, the CBE issued a tender of US-dollar denominated T-bills with a total of $980 million, due on 8 February 2022.
In January, the CBE offered, in an auction, US-dominated T-bills worth $850 million in the same type.
The proceeds of this kind of auctions are used to replenish Egypt’s net international reserves (NIRs).
Egypt’s NIRs has started to recover from the severe impacts of the pandemic since June 2020, after it sharply declined to $38.2 billion in March – down from $45.1 billion.
In March, Egypt’s NIRs continued its incremental rebound to reach $40.3 billion.
During April, JP Morgan announced that it is set to relist Egypt on its emerging-market government bond index (GBI-EM index) for emerging markets, which paves the way for the country’s capital markets’ reflation.
Egypt was removed from the index in June 2011 on the back of the economic and political instability the country witnessed amid the 25th January revolution, which eroded the country’s ability to meet its requirements.
Such a development comes in line with Egypt’s government efforts to reduce the cost of public debt as part of the country's economic reforms, according to finance minister Mohamed Maait.