CAIRO Jan 6 Yields on Egyptian treasury bills
rose at an auction on Sunday, extending a trend of rising rates
as investors fret over the weakening Egyptian pound and the fate
of a $4.8 billion IMF loan the government is seeking.
Political strife in recent weeks over a new constitution has
put pressure on the pound as Egyptians scrambled to sell local
currency, forcing the central bank to impose a new currency
regime on Dec. 30 to preserve depleted foreign exchange
The pound, which hit a new record low of 6.44 pounds against
the U.S. dollar on the interbank market on Sunday, has lost 4
percent of its value since the new regime was introduced.
The average yield on 1 billion Egyptian pounds ($156
million) of 91-day bills rose to 13.581 percent from 12.962
percent at the last auction on Dec. 23.
The yield on 4 billion pounds of 266-day bills rose to
14.429 from 13.482 at the Dec. 23 auction.
Investors are also worried that Egypt will not be able to
enforce tax increases required if it is to secure a badly needed
loan from the International Monetary Fund to help support its
struggling economy. A senior IMF official is due to arrive for
talks in Cairo on Monday, officials said.
The central bank sold all the bills it had offered.