Central Bank of Egypt Governor Ismail Hassan announced that the exchange rate remains at LE3.85/$1 with a permitted fluctuation of one percent while pointing out that no changes were introduced to the January 29 procedures. Interbank rates have continued their upward movement to average 11.55 percent this week compared to an average 11.2 percent for the week ending February 8.
Likewise, the CAIBOR increased from an average 11.06 percent last week to 11.36 percent for the week ending February 15. The rise in interbank rates is attributable to the recurrent forex interventions of the CBE.
The Central Bank of Egypt announced the acceptable bids for its 182-day T-Bill auction, from which 48 out of 59 bids were accepted with a total face value of LE401.975 million. The annual interest rate ranged between 9.011 percent and 9.127 percent with an average of 9.123 percent.
The Central Bank of Egypt announced the acceptable bids for its 91-day T-Bill auction, from which 34 out of 46 bids were accepted with a total face value of LE436.500 million. The annual interest rate ranged between 9.023 percent and 9.119 percent with an average of 9.099 percent.
In a seminar organized by the economic committee of the jounalists’ syndicate, economists warned of the contractionary repercussions of the new forex rules on domestic liquidity. They called for a reduction in the 15 percent reserve ratio for domestic deposits, establishment of a deposit insurance body and the merger of small banks to improve capital adequacy.
On a related note, Prime Minister Atef Ebeid announced that he will meet soon with bank unions to discuss consolidation in the banking industry in an effort to strengthen smaller banks and to foster a sound financial sys-tem.
Merrill Lynch and Morgan Stanley Dean Witter have been selected out of 19 financial international institutions by the ministerial economic group to act as lead managers in Egypt’s first Eurobond issue to be offered on world markets. Minister of Finance Medhat Hassanein confirmed that the two leading investment banks would share responsibilities and fees as consultants on issues concerning timing and pricing of the bond.
Prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)
