(MENAFN- Daily News Egypt)
The Central Bank of Egypt (CBE) recently received 23 offers from both local and foreign investors, totalling $1.1176bn, to cover a USD-denominated treasury bills auction.
This auction, announced by the CBE on Monday, has a total value of $980m and is set to mature on 29 April 2025.
According to data published on the CBE's website, only 20 offers were accepted, amounting to $997m. The interest rates for these accepted offers ranged between 5.148% and 5.149%, remaining unchanged from the previous similar auction held by the bank on February 5.
Notably, some investors requested a return as high as 6.099%, but their bids were rejected.
The CBE allows subscription to these bills for both local banks and foreign institutions, with a minimum subscription amount of $100,000 and its multiples.
Investors participate in the auction using the same method as local currency bill offerings. Each“primary dealer” bank submits a subscription request to the CBE, specifying the desired amount and interest rate. The CBE evaluates these requests and accepts suitable ones.
The return on these dollar-denominated bills is determined based on various indicators, including global market interest rates, alternative investment opportunities, and the credit rating of the state.
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