Banks’ in­vest­ments in T-Bills reached EGP 749.117bn at end of Oc­to­ber: CBE

The Daily News Egypt - - News - By Hos­sam Mounir

The to­tal amount of banks’ in­vest­ments, op­er­at­ing in the lo­cal mar­ket in the gov­ern­ment’s trea­sury bills (T-Bills), amounted to ap­prox­i­mately EGP 749.117bn at the end of Oc­to­ber 2018.This num­ber went up from EGP 738.644bn in Septem­ber 2018,an EGP10.5bn in­crease, ac­cord­ing to the Cen­tral Bank of Egypt (CBE).

In a re­cent re­port, the CBE said that the in­crease was fu­elled by pub­lic banks pump­ing more in­vest­ments into T-Bills, reach­ing EGP 386.331bn at the end of Oc­to­ber, up from EGP 380.405bn in Septem­ber. For­eign banks’ in­vest­ments in­creased to EGP 46.302bn, against EGP 35.438bn, while spe­cialised banks’ in­vest­ments reached EGP 14.12bn, up from EGP 13.65bn.

In con­trast, pri­vate sec­tor banks’ in­vest­ments in credit de­clined to EGP 302.42bn by the end of Oc­to­ber, in com­par­i­son to EGP 309.16bn at the end of Septem­ber.

Ac­cord­ing to the CBE, the out­stand­ing bal­ance of T-Bills at the end of Oc­to­ber 2018 reached EGP 1.316tn, against EGP 1.305tn at the end of Septem­ber, up by EGP 11bn.

Ad­di­tion­ally, the CBE noted that for­eign­ers’ in­vest­ments in T-Bills de­clined for the sev­enth month in a row, down by $1.3bn in Oc­to­ber 2018.

Ac­cord­ing to the CBE, for­eign cus­tomers’ in­vest­ments in T-Bills reached EGP 210.213bn at the end of Oc­to­ber or $11.707bn, down from EGP 234.519bn or $13.061bn, at the end of Septem­ber.

For­eign in­vest­ments in Egyp­tian TBills have been de­clin­ing since April 2018,with the be­gin­ning of the emerg­ing mar­ket (EM) cri­sis, which re­duced in­ter­est traders’ con­fi­dence in EM economies, in­clud­ing Egypt.

Since the start of the de­cline, the value of the in­vest­ments with­drawn by for­eign­ers from the T-bills reached $9.7bn, by the end of Oc­to­ber 2018.

On an­other mat­ter, the CBE dis­closed the rise in the bank’s se­cu­ri­ties port­fo­lio to EGP 1.755tn at the end of Septem­ber 2018,against EGP 1.750tn at the end of Au­gust 2018, up by EGP 5bn.

The CBE noted that se­cu­ri­ties in lo­cal cur­rency in­creased by EGP 7bn to EGP 1.301tn at the end of Septem­ber, com­pared to EGP 1.294tn at the end of Au­gust, while se­cu­ri­ties in for­eign cur­rency de­creased by about EGP 2bn to EGP 454bn in Septem­ber, against EGP 256bn in Au­gust.

The CBE noted that for­eign­ers’ in­vest­ments in T-Bills de­clined for the 7th month in a row, down by $1.3bn in Oc­to­ber 2018

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