Treasuary Bills Essay

2141 Words9 Pages
Introduction The money policy of the Central Bank of Egypt (CBE) aims to keep the national economics' stability and limit the risk of strong sudden changes that associated with inflation and slack periods, and this done by adopting a group of polices to control the available liquidity and hence the purchasing power available in the market. These polices are: • Credit Policy: This policy is about the outline frame that working banks in Egypt work through to practice its credit activities from the point of defining discount price, credit limits, fields of activities and ratios of reservations and liquidity. This is called the limits that Central Bank has right to use to direct the working banks. • Exchange Policy: It is the policy defined by the Central Bank to manage the exchange price to keep the purchasing power of the national currency and prevent its failure and keep its stability. Central Bank can sell or buy in the money market in order to achieve this target. • Managing public debt: This policy used by the Central Bank to manage the country public debt to secure the required liquidity needed to finance the current activities and investments. This done through Treasury Bills (short-term), Treasury Bonds (long-term) and loans from local and international organizations. Treasury Securities Definition Treasury securities are government bonds (Negotiable debt obligations of the government) issued by the governmental organizations and these organizations differs from one country to another, for example in the United States, the United States Department of the Treasury issues Treasury Securities through the Bureau of the Public Debt, In Canada, Central Bank of Canada (the Bank of Canada) issues the Treasury Securities. In Egypt, Central Bank of Egypt (CBE) issues the Treasury Securities on behalf of the Ministry of Finance. Treasury

More about Treasuary Bills Essay

Open Document