MEMPHIS REISEN

CBE to launch $1bn tender for local treasury bills in US currency – Dailynewsegypt

The Central Bank of Egypt (CBE) will launch a tender for local treasury bills in US currency worth $1bn on Monday, with a maturity of one year, ending on 5 February 2025.

The CBE received 31 bids worth $1.02bn for a similar tender in January worth $830m, of which it accepted 20 bids worth $850m, with an interest rate of 5.149%. Some investors asked for a return of up to 6.25% to subscribe to this tender, but the CBE rejected them.

The CBE allows both local and foreign banks and institutions to subscribe to these bills, with a minimum amount of $100,000 and multiples of that.

The subscription process for these dollar bills is the same as for the local currency bills. Each bank of the “main dealers” sends a subscription request to the CBE, stating the amount and the interest rate they want. The CBE collects and approves the requests.

The interest rate on these dollar bills depends on several factors, such as the global market rates for the US dollar, the alternative investment options for local and foreign banks and institutions, and the country’s credit rating.