Local Banks Lend Finance Ministry US$ 819 Mln Despite Dollar Liquidity Shortage

Local banks lent the Egyptian Ministry of Finance US$ 819 million through investing in dollar-denominated T-bills offered in an auction on Monday.

The Ministry stated that it offered 364-day dollar-denominated T-bills worth US$ 750 million, but the banks’ higher-than-expected demand raised the yields to US$ 819 million.

The yields on 364-day T-bills ranged from 3.70% to 3.80%, while the average rate registered 3.79%. The yields of dollar T-bills vary according to the value of dollar liquidity with banks.

The Ministry of Finance sells dollar-denominated T-bills so as to strengthen its foreign reserves.