CAIRO - 10 April 2023: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 1 billion in treasury bonds (T-bonds) on Monday, April 10.
The T-bonds were offered in one installments with a variable return at LE 1 billion with a three-year term.
The Ministry of Finance aims to issue 22 tenders for treasury bills and bonds worth LE 326.75 billion in April, including 16 tenders for bills worth LE 318 billion and 6 tenders for bonds worth LE 8.75 billion.
The government borrows through bonds and treasury bills over different periods of time, and government banks are the largest purchasers of them.
The banks operating in the Egyptian market are the largest sectors investing in bonds and treasury bills, which the government periodically offers to cover the state's general budget deficit.
The Monetary Policy Committee (MPC) decided, in March, to raise the Central Bank of Egypt’s (CBE) interest rates by 2 percent. The overnight deposit rate, overnight lending rate, and the rate of the main operation were raised by 200 bps to 18.25 percent, 19.25 percent, and 18.75 percent, respectively.
The discount rate was also raised by 200 bps to 18.75 percent.
Egypt is witnessing an inflationary wave that has been accelerating almost every month since the beginning of 2022, as a result of the high costs of importing energy and food, due to the Russian-Ukrainian crisis, and the Corona epidemic crisis.
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