Tomorrow, Monday 11-11-2024, the Central Bank of Egypt will issue fixed and variable-yield treasury bonds worth 12 billion pounds, in coordination with the Ministry of Finance to finance the budget deficit.
According to the Central Bank’s website, the offerings are as follows: 10 billion pounds of fixed-return treasury bonds, with a maturity of 3 years, and an annual return period.
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.
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 is noteworthy 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%.
