Wednesday 25 May 2011

Egypt Accepts 6 Billion Pounds in Seven-Day Repos at Auction

Egypt’s central bank accepted 6 billion Egyptian pounds ($1 billion) in seven-day repurchase agreements, or repos, at an auction today, according to data it published on Bloomberg.

The central bank said it received 6.1 billion pounds in bids for the agreements, which it offers weekly at an interest rate of 9.25 percent. Last week, it awarded 8.21 billion pounds instead of the 10 billion pounds it sought.

The North African country’s central bank started the repo facility in March to allow banks to sell government securities back in order to access more liquidity.

The yield on Egypt’s 5.75 percent dollar bond due in April 2020 rose two basis points, or 0.02 percentage point, to 5.94 percent at 3:41 p.m. in Cairo. The pound was little changed at 5.9514 per dollar.

To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Digby Lidstone at dlidstone@bloomberg.net

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