Mubasher TV
Contact Us Advertising   العربية

Foreign investors inject $3bn into Egyptian debt in 2 weeks

Foreign investors inject $3bn into Egyptian debt in 2 weeks
Foreign investors are returning to cash in on a favorite carry trade

Cairo – Mubasher: Foreign investors injected $3 billion into Egyptian debt in the first two weeks of July, Bloomberg reported on Monday, citing Egyptian officials who asked not to be identified.

At the end of June, international investors’ holdings of local-currency government bonds reached $10.6 billion, according to the international news agency.

The is a reversal from Egypt’s massive capital outflows in the earlier months of the coronavirus (COVID-19) crisis as “investors are again looking to cash in on a favorite carry trade, in which they borrow in currencies where interest rates are low and invest in the local assets of countries where they are high.”

The country’s bonds have the fourth highest return at 6.8% in US dollar terms among 25 emerging markets, according to Bloomberg.

The average rate of EGP-denominated bonds is one of the world’s highest inflation-adjusted returns at 8.4%.