Egypt cbank takes fewer repos from cash-flush banks

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CAIRO: Egypt’s central bank on Tuesday accepted far fewer seven-day repurchase agreements than it had asked for in the money market, as banks sat on a surfeit of cash following smaller-than-anticipated treasury bill sales.

The central back accepted repos worth LE 1.606 billion ($270 million), less than the LE 6 billion it had offered.

One dealer said banks were flush with cash because maturing treasury bills exceeded those sold at central bank auctions on Thursday and Sunday by LE 11 billion.

The central bank had sought LE 13.5 billion at the two T-bill auctions, but ended up selling only LE 2.5 billion.

The repos carry a fixed rate of 9.25 percent.

The central bank introduced its weekly repo offerings in March to keep short-term interest rates under control after the ousted president Hosni Mubarak on Feb 11.


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