CBE Completes Phase 3 of Government Securities Market Development Project

 The Central Bank of Egypt, in coordination with Ministry of Finance, Egyptian Stock Exchange, Financial Regulatory Authority, and the banks operating in the market, has completed the third phase of developing the mechanism for issuing government securities in the primary market.

Additionally, they have updated the mechanism for executing and settling secondary market operations and transferred the deposit and settlement activities of Egyptian t-bills and bonds to Misr for Central Clearing, Depository and Registry, specifically established for this purpose, starting from September 24, 2023.

These measures contribute to the development and revitalization of the government debt instruments, Egyptian t-bills and bonds, aligning them with international standards and practices. This helps attract new segments of participants in the local and foreign financial markets and creates a competitive environment for achieving fair pricing for government securities.

In this context, the project teams from the Central Bank's banking operations, markets, and information technology sectors, as well as the Egyptian Central Depository and Registration Company, have actively contributed to the preparation of technical rules and infrastructure for the development and integration of these systems, ensuring optimal implementation of these processes, with the assistance of European Bank for Reconstruction and Development.

Both CBE and Misr for Central Clearing, Depository and Registry, along with the Egyptian Stock Exchange, have updated their technological infrastructure systems by adding new mechanisms and features for executing primary market issuances, secondary market operations, and the deposit of Egyptian t-bills and bonds, including linking these parties with all participants in government debt instruments.

CBE continues to monitor developments in the development and updating of government debt instruments in local and international markets to achieve the objectives of the overall economic policy.