Arab Today, arab today egypt\s central bank to start 28day
Last Updated : GMT 14:35:38
Arab Today, arab today
Arab Today, arab today

Egypt\'s central bank to start 28-day

Arab Today, arab today

Arab Today, arab today Egypt\'s central bank to start 28-day

Cairo - Arabstoday

Egypt\'s central bank will introduce 28-day repurchase agreements (repos) on July 10, a move one banker said was designed to add liquidity to a market drained of funds because of soaring interest rates on treasury bills. The Central Bank of Egypt (CBE) had already introduced seven-day repos in March 2011 to manage short-term interest rates after the political and economic unrest that ousted President Hosni Mubarak. It offers the repos to banks once a week at an interest rate of 9.75 per cent. \"As part of its monetary policy framework, the CBE has decided to introduce a 28-day repurchasing agreement (repo) starting July 10, 2012,\" the central bank\'s Monetary Policy Committee said in a statement after a meeting on Thursday. It said the 28-day repos would be variable rate tenders with a minimum bid equal to its seven-day repo rate. \"They\'re trying to ease the market, because in recent weeks liquidity has been tightening,\" said the banker, who works in the treasury of a Cairo-based bank. The tighter liquidity was due to higher interest rates that have prompted banks to invest increasing amounts of money in treasury bills, he said. Yields on short-term T-bills have hit record highs in the last month as Egypt\'s government turns increasingly to domestic banks to finance a budget deficit that has widened in the wake of last year\'s uprising that toppled Mubarak. The average yield on 182-day treasury bills rose to 15.359 percent at an auction on Thursday, their highest in at least a decade. After tax, this translates into an effective yield of around 12 percent. The high yields have spilled over into the interbank market, pushing overnight rates to between 10.0 and 10.1 percent in recent weeks. This comes close to the 10.25 percent rate charged by the central bank for overnight borrowing and exceeds the 9.75 per cent banks can get through the central bank\'s repo system. Banks have been using funds obtained at 9.75 per cent under the weekly repo offerings to buy T-bills. \"They get these maturities and renew them, doing rollovers and buying more and more. And they have the funding source, which is the repo,\" the banker said. \"You can monitor this in recent weeks,\" he said. \"The amounts of the repos injected by the central bank have been increasing, increasing, increasing. They started with like 10 billion (Egyptian pounds, or $1.65 billion), then 12, 15, 20, 25. On Tuesday, two days ago, they auctioned 38 billion.\" He said the new 28-day repos would alleviate the pressure only in the short term. \"I think it\'s going to recur, because people are greedy. They will get the money and reinvest in T-bills and bonds,\" he said. From Ahramonline

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt\s central bank to start 28day Arab Today, arab today egypt\s central bank to start 28day

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday