CBE Attracts $605.6m in Dollar-Denominated Treasury Bill Auction

The Central Bank of Egypt (CBE) has received 19 offers totalling $605.6 million for its dollar-denominated local treasury bills from both local and international investors. The bank issued $500 million in treasury bills with a one-year maturity due in June 2025, aimed at refinancing a previous auction held on June 6, 2023, which raised $554.1 million.

Out of the 19 offers, the CBE accepted 17 bids amounting to $500.6 million. The interest rates for these bids ranged from 5.148 percent to 5.149 percent, consistent with the rates set during the last auction on April 29, 2023.

Both local banks and foreign institutions are eligible to subscribe to these bills, with a minimum subscription amount of $100,000. The subscription process involves primary dealers submitting requests to the central bank, specifying the desired amount and interest rate. The central bank reviews these requests and determines the accepted bids.

In a previous auction on April 29, 2023, the CBE received 23 bids totalling $1.1176 billion, accepting 20 bids valued at $997 million with the same interest rate range of 5.148 percent to 5.149 percent. This auction also had a one-year maturity, expiring on April 29, 2025.

The Central Bank of Egypt uses a variety of instruments, including treasury bills, treasury bonds, and deposit auctions, to manage liquidity and achieve its operating targets effectively.