Domestic banks shouldn't be financing the budget deficit
Commercial International Bank said that it will cease purchasing government securities for now, Zawya reported.
CIB chairman and managing director Hisham Ezz El-Arab stated
that CIB sets a limit on the amount of government securities it holds, which fluctuates according to movements in the yields.
"We won't be buying and the decrease [in Treasury bill purchases] is because domestic banks shouldn't be financing the budget deficit," Ezz Al-Arab said,
A CIB spokesman confirmed to beltone financial that the bank won't increase its exposure to Egyptian sovereign risk, though it would not rule out rolling over its existing securities holdings when they mature.