The Central Bank of Egypt (CBE) will tender $1.05bn in treasury bills on Monday 7 February for a period of 364 days.
The proceeds of this tender will be directed to pay off a previous tender put forward by the CBE on 9 February 2021, through which it obtained $1.088bn.
The CBE received 33 offers from local and foreign investors worth $1.0379bn to cover a similar bid that the bank put forward on 4 January 2022.
Of those offers, the CBE accepted 27 offers worth $852.9m with an interest rate ranging between 2.97% as the lowest price, 3% as the highest price, and 2.994% as an average, while the bank rejected other offers in which the required interest rate reached 4%.
The CBE allowed subscription in these bills for each of the local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples.
Banks subscribe to dollar bills in the same manner as in local currency bills, where each bank submits its bid to the CBE, indicating the amount to be subscribed to in the bills and the interest rate requested. Bids are then collected by the CBE for study and acceptance of the appropriate ones.
Banks operating in the local market rely a lot on these bills to invest their dollar liquidity in a container guaranteed by the government with an appropriate return in the absence of other investment aspects for that liquidity, except for the rare joint loans that are offered between separate periods or investing in the money markets.
The return of these dollar bills is determined according to several indicators, the most important of which are the volume of dollar liquidity in the market, the alternative investment opportunities available to local and foreign banks and financial institutions, and the country’s credit rating.
