Central Bank of Egypt to issue 90B EGP treasury bills tomorrow amid recent 100 bps interest rate cut.
Central Bank of Egypt headquarters prepares for the upcoming 90 billion EGP treasury bills issuance to fund budget needs.
The Central Bank of Egypt will issue treasury bills worth 90 billion Egyptian pounds tomorrow, Thursday, for terms of 182 and 364 days. This move is coordinated with the Ministry of Finance to help finance the state budget deficit.
Treasury bills are government debt instruments with maturities ranging from three months to one year, making them short-term securities.
According to the Central Bank’s website, the first issuance will be approximately 45 billion EGP for a 182-day term, while the second issuance will also be 45 billion EGP for a 364-day term.
Throughout the fiscal year, the Ministry of Finance authorizes the Central Bank to manage its treasury bill and bond issuances in Egyptian pounds. The proceeds from these issuances are used to fund the state’s general budget for the current fiscal year.
In its most recent monetary policy meeting, the Central Bank’s Monetary Policy Committee decided to cut key interest rates by 100 basis points. The deposit rate was lowered to 24%, the overnight lending rate to 25%, and the main operation rate to 24.5%. Additionally, the discount and credit rate was cut by 100 basis points to 24.5%.
This interest rate cut aims to stimulate economic growth while maintaining control over inflation, reflecting the Central Bank’s response to current economic conditions.
