Egypt’s Central Bank to issue EGP 65 billion treasury bills

The Central Bank of Egypt (CBE) has announced plans to issue treasury bills worth EGP 65 billion (approximately £1.7 billion) on Sunday, 5 January 2025, split across two different maturities as part of its ongoing monetary policy operations.

According to the CBE’s official statement, the issuance comprises two tranches: a three-month bill worth EGP 25 billion, maturing on 8 April 2025, and a nine-month bill valued at EGP 40 billion, with maturity set for 7 October 2025. Both tranches will be issued on 7 January 2025.

This announcement follows the central bank’s significant liquidity management operation last Tuesday, where it withdrew EGP 639.150 billion from 27 banks through open market operations. This withdrawal was executed at an interest rate of 27.75%, reflecting the bank’s recent policy adjustments.

The sizeable treasury bill issuance comes as Egypt continues to manage its monetary policy amid ongoing economic challenges. The CBE’s aggressive liquidity management strategy signals its commitment to controlling inflation and stabilising the Egyptian pound.

Market analysts note that the high interest rate environment reflects the central bank’s efforts to attract investors and manage domestic liquidity, while also addressing broader economic pressures.