Egypt’s latest T-bills auction attracts EGP 45 bln: CBE

Doaa A.Moneim , Monday 20 Dec 2021

Egypt’s latest treasury bills’ (T-bills) auction managed to bring in more than EGP 45 billion through 438 bids, according to the Central Bank of Egypt (CBE).

CBE logo.

On Sunday, the CBE offered 237-day and 91-day T-bills with a total value of EGP 18.5 billion.

The CBE made the offer on behalf of the Ministry of Finance to finance the budget deficit.

Only 230 bids out of 438 were accepted, as they covered the value of the offered T-bills.

The CBE offered the 237-day T-bill with a weighted yield average of 12.9 percent the 91-day T-bill with an 11.8 percent weighted yield average.

On Thursday, the CBE also offered 182-day and 364-day T-bills with a total value of EGP 18 billion.

The two T-bills brought in close to EGP 50 billion, with the CBE only accepting 243 bids out of 416.

Foreign investments in Egypt’s local-currency debt instruments market have rebounded after experiencing a drop amid the pandemic, helping the country to finance its larger current account deficit resulting from continued strong domestic demand and a decline in tourism revenue, which has also begun to recover, Fitch Ratings said in a new report.

The report attributed this to Egypt’s record of economic and structural reforms, International Monetary Fund (IMF)-support programmes, high real interest rates, and a stable exchange rate.

On the other hand, Egypt’s external debt maintained its ratio at 91.4 percent of GDP in 2021 amid the heavy pressure placed by the ongoing COVID-19 crisis and its related impacts, according to the updated Global Debt Database published by the IMF last week.

In December, Minister of Finance Mohamed Maait announced that Egypt is ready to join JP Morgan’s Emerging Markets Bond Index as of January 2022 after about 11 years of being excluded due to the aftermath of the 25th of January revolution.

Egypt will be relisted on the index with an estimated weight of 1.8 percent with 14 government bonds with a total value of $24 billion, according to JP Morgan.

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