Today, Monday 11-18-2024, the Central Bank of Egypt is offering fixed and variable-yield treasury bonds worth 13 billion pounds.
Propositions
According to the Central Bank of Egypt’s website, the offerings amount to about 11 billion pounds in fixed-return treasury bonds, with a maturity of 2 and 3 years, with an annual and semi-annual return period.
While it is offering variable-yield treasury bonds worth 2 billion pounds, with a maturity of 5 years, and with a quarterly return period.
What are treasury bonds?
Treasury bonds are known as an instrument issued by companies or countries, which are negotiable by legal means, and are considered a loan for an indefinite period, whether long-term, short-term, or medium-term, ranging from two to 20 years.
Authorization of the Ministry of Finance
The Ministry of Finance authorizes the Central Bank, throughout the fiscal year, to manage its own offerings of treasury bills and bonds in Egyptian pounds, provided that it finances and spends the proceeds on items in the state’s general budget for the current fiscal year.
Interest rates
It should be noted that the Monetary Policy Committee of the Central Bank of Egypt had decided in its last meeting to maintain the overnight deposit and lending rates and the Central Bank’s main operation rate at 27.25%, 28.25% and 27.75%, respectively. It also decided to keep the credit and discount rates at 27.75%.
Date of the next central bank meeting
The Central Bank of Egypt will meet next Thursday to discuss new interest rates, amid strong expectations to keep interest rates unchanged in the penultimate meeting of 2024.
