The issuance received high demand from investors, covering 120 percent of the issuance value, which sent a positive message of trust in the CBE’s securities.
The CBE sold $850 million in T-bills in the issuance at an average yield of 5.29 percent.
The average yield of one-year securities reached 4.79 percent on 29 December 2023, according to the Federal Reserve Bank of St. Louis.
The CBE has been taking various steps to increase its international reserve, amid a shortage in foreign currency that caused a discrepancy between official and parallel exchange rates of local currency.
The bank auctioned $990 million and $1.61 billion USD-denominated T-bills in November and December 2023.
The bank issued 645 million euros in T-bills in November 2023, after a 600 million euros issuance in August 2023.
The CBE usually issues T-bills on behalf of the Ministry of Finance to cover the budget deficit.
Egypt’s budget deficit rose to 3.85 percent of GDP during the first quarter (July-September) of FY2023/2024, up from 2.05 percent in the corresponding quarter in FY2022/2023.
Despite the acute shortage in the US dollar, the country should pay $29.23 billion in external debt service in 2024, $19.43 billion in 2025, and $22.94 billion in 2026.
Egypt is under review for a $3 billion loan agreement with the International Monetary Fund (IMF). The review has been delayed multiple times, with no final date set yet.
The Egyptian government announced a plan to collect $191 billion through 2026 by gradually expanding its Initial Public Offering (IPO) program and introducing additional incentives for foreign investors, such as tax exemptions and golden licenses.
