Average yields on Egypt T-bills stable after termination of repatriation mechanism
Average yields on Egyptian treasury bills were stable on Thursday, the first auction after the country scrapped the repatriation mechanism. The average yield on one-year T-bills was 19.97%, compared to 19.92% at the last similar auction, while the average yield on 6-month T-bills was 19.98%, compared to 19.89% at the last auction, CBE data showed.
Speaking of the repatriation mechanism, IMF Mission Chief to Egypt Subir Lall praised the decision in remarks carried by state news agency MENA. Lall said the move was timely and critical to the advancement of the Madbouly government’s reform program. The mechanism played a key role in the first phases of the program, he noted, helping attract portfolio investment. Scrapping the mechanism sends the right message to investors, said Citibank Egypt’s country treasurer, Mohamed Abdel Kader, underlining that Egypt has put the days of foreign currency shortages behind it and is now on the road to recovery.