Investments in debt instruments and treasury bills have resumed in Egypt, along with a recent devaluation of the Egyptian pound and an increase in the interest rate.
Last week, the Central Bank of Egypt sold Egyptian pound treasury bills to investors for EGP 82.246bn. Purchase orders exceeded EGP 113.517bn. While the average interest rate on 182-day treasury bills rose to 21.032%, the average interest rate on 364-day treasury bills rose to 21.520%.
According to experts, big treasury bills were sold due to foreign investors buying at higher rates than usual, stimulating local investors. Since March 2022, the Egyptian pound has depreciated by 70%. Economic analysts expected a new devaluation of the Egyptian pound. The country’s foreign exchange reserves declined to $33.532 billion last November. Inflation also rose to 19.2% in the same month.