https://arab.news/m8uz5
JEDDAH: Egypt’s central bank has issued treasury bills worth 50 billion Egyptian pounds ($1.06 billion) as the country seeks to manage liquidity and support government financing amid rising inflation.
One tranche offers 30 billion pounds in 91-day bills maturing on Dec. 31, and while the other covers 20 billion pounds in 273-day bills due July 1, 2025.
The move comes as part of the CBE’s broader effort to curb inflation and provide investors with short- and medium-term investment options.
This follows a similar issuance on Sept. 26, when the Central Bank of Egypt offered treasury bills worth 50 billion pounds through two auctions.
The first tranche, valued at 30 billion pounds, carries a 182-day tenor, maturing on April 1, 2025. The second, totaling 20 billion pounds, will mature in 364 days on Sept. 30, 2025.
Earlier, on Sept. 22, the CBE auctioned treasury bills worth 60 billion pounds in two tranches.
The central bank plays a key role in managing Egypt’s public debt and maintaining financial stability.
Egypt’s inflation remains high, with urban consumer price index inflation hitting 2.1 percent in August, up from 0.4 percent in July.
Annually, CPI inflation rose to 26.2 percent from 25.7 percent in the previous month.
The central bank’s core CPI inflation measure showed an increase to 0.9 percent in August, compared to a negative 0.5 percent in July, with the annual rate rising to 25.1 percent from 24.4 percent.
In its latest review, the International Monetary Fund reported that Egypt’s economy is showing signs of recovery as government efforts to restore macroeconomic stability begin to yield results.
The IMF noted that while inflation remains high, it is gradually decreasing.
Egypt has undertaken several economic reforms aimed at maintaining fiscal stability, including the unification of the official and parallel exchange rates in March.
Since then, the economy has improved significantly, with the pound becoming market-determined, the foreign exchange backlog at banks cleared, and daily interbank exchange turnover increasing.
However, the IMF highlighted that geopolitical challenges, such as the Gaza conflict and Red Sea tensions, are complicating the reform process.