The Central Bank of Egypt (CBE) issues on Monday a dollar-denominated treasury bill, worth $1bn for a year, due on 8 December 2020.
The CBE uses the proceeds of this bid to pay the value of a previous bid submitted by the bank on 11 December 2018 at a value of $1.103bn and is due on Tuesday, 10 December 2019.
The CBE issued its latest dollar-denominated treasury bills on 18 November 2019, at a value of $1.56bn for a year, due on 17 November 2020. In this bid, the CBE received 43 offers from local and foreign investors at a value of $1.721bn, of which 33 were accepted at just $1.56bn. The interest rate accepted by the CBE was 3.55% as the lowest price, 3.6% as the highest price, and 3.587% as an average, and other offers were rejected at higher rates up to 3.9%.
During the year 2019, the CBE offered five bids for treasury bills in dollars, through which they obtained about $5.1432bn.
It is noteworthy that the CBE allows subscribing to these bills for both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples. The return on these dollar bills is determined according to several indicators, the most important of which are the amount of dollar liquidity in the market, alternative investment opportunities available to local and foreign banks and financial institutions, and the country’s credit rating.