Local and foreign financial institutions offered to invest $1.28bn in the dollar-denominated treasury bills (T-bills) issued by the Central Bank of Egypt (CBE) on Monday. On behalf of the Ministry of Finance, the CBE floated T-bills worth $1.1bn. According to data obtained by Daily News Egypt, the CBE accepted $1.1bn of the total bids. The highest rate of interest on investment in the auction reached 3.3%, while the lowest was at 3.28%, averaging 3.29%, unchanged from a similar auction posed in February 2018. The interest rates on the dollar-denominated T-bills were decided in accordance with a number of factors, most prominently the dollar liquidity in the market, the alternative investment opportunities available for the local and foreign financial institutions that invest in the bills, and the country's credit rating. The proceeds of the tender are to cover the value of a previous tender worth $1.2105bn put forward on 9 May 2017. Since the beginning of the year, the CBE has floated three offerings of dollar-denominated T-bills, proceeding a total of $3.12bn, including $944.5m from an auction on 9 January 2018, due on 8 January 2019; $1.075bn floated on 13 February 2018, due in 12 February 2019; and the latest offer worth $1.1bn on Monday, to be repaid by 7 May 2019. The CBE allows local banks and foreign institutions to subscribe to the bills with a minimum of $100,000 and its multiples.
