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CBE issues USD1.15 billion in government debt to finance budget deficit
(MENAFN) The Central bank of Egypt is set to offer government debt instruments, including bonds and treasury bills, totaling 59 billion Egyptian pounds (USD1.15 billion) over the next two days to address the country's budget deficit. The demand for Egyptian debt instruments has been rising, with yields continuing to climb to record levels. This comes as the value of the Egyptian pound hits a new low, reaching nearly 51 pounds to the dollar, according to bank data.
Treasury bill auctions in Egypt have seen demand that exceeds the amount offered, with requests often doubling the supply. However, the government has been accepting less than what is being requested, with the yield on 6-month treasury bills reaching a new record high of 33 percent. This reflects the strong demand for these instruments despite the rising yields.
In a recent meeting, the Monetary Policy Committee of the Central Bank of Egypt decided to keep interest rates unchanged for the fifth consecutive time. This decision comes after several months of persistent inflation, which has impacted the economy, leading to a cautious approach on interest rates.
Today, the Central Bank of Egypt is offering 25 billion pounds worth of 3-month treasury bills and 30 billion pounds worth of 9-month treasury bills. Additionally, tomorrow it will issue fixed-rate bonds in Egyptian pounds worth 3 billion pounds for a 3-year term and variable-rate bonds worth 1 billion pounds for the same period. Government banks are typically the largest buyers of these debt instruments.
Treasury bill auctions in Egypt have seen demand that exceeds the amount offered, with requests often doubling the supply. However, the government has been accepting less than what is being requested, with the yield on 6-month treasury bills reaching a new record high of 33 percent. This reflects the strong demand for these instruments despite the rising yields.
In a recent meeting, the Monetary Policy Committee of the Central Bank of Egypt decided to keep interest rates unchanged for the fifth consecutive time. This decision comes after several months of persistent inflation, which has impacted the economy, leading to a cautious approach on interest rates.
Today, the Central Bank of Egypt is offering 25 billion pounds worth of 3-month treasury bills and 30 billion pounds worth of 9-month treasury bills. Additionally, tomorrow it will issue fixed-rate bonds in Egyptian pounds worth 3 billion pounds for a 3-year term and variable-rate bonds worth 1 billion pounds for the same period. Government banks are typically the largest buyers of these debt instruments.
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