(MENAFN- Daily News Egypt) The Central Bank of Egypt (CBE) will launch a tender for one-year treasury bills denominated in the American currency, at a value of $540m, on Monday.
The proceeds of this tender will be used to pay off a previous tender that was offered on 7 June 2022, through which the Central Bank obtained $565.1m.
The Central Bank had received 23 bids worth $1.076bn to cover a similar tender that it put out on 1 May at a value of $1bn.
According to Central Bank data, on its website, the bank accepted 20 bids at a value of $1.0076bn, with interest ranging between 4.899% as the lowest price, 4.9% as the highest price, and 4.9% as the average.
The Central Bank allows local and foreign institutions to subscribe to those bills, with a minimum subscription of $100,000 and its multiples.
Investors subscribe to bills in dollars, in the same manner, followed in issuances of bills in local currency, whereby each bank of the“main dealers” submits a subscription application to the Central Bank, indicating in it the amount that will be subscribed to in the bills and the interest rate that it requests, and the applications are collected at the Central Bank for study and appropriate acceptance of which.
The return of those dollar bills is determined according to several indicators, the most important of which are interest rates on the dollar in global markets, alternative investment opportunities available to local and foreign banks and financial institutions, and the country's credit rating.
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