Official: Foreigners pumped $ 3 billion into the Egyptian debt market in the first two weeks of July

Official: Foreigners pumped $ 3 billion into the Egyptian debt market in the first two weeks of July

According to Bloomberg News, Egypt started to compensate for the capital losses it suffered at the beginning of the outbreak of the global epidemic “Corona” on its lands, when foreign investors withdrew more than half of their money from the local debt instruments market.

10.6 billion dollars foreign investments in the Egyptian debt market
"Bloomberg" indicated that foreign investors returned to buy in July and for the second month in a row, which boosted their holdings of government debt instruments denominated in local currency to $ 10.6 billion, in a shift from the largest outflows ever in the three months preceding June.

A government official told Bloomberg, who asked not to be identified for the confidentiality of the information, that foreigners pumped $ 3 billion into the domestic debt market in the first two weeks of July.

With the Central Bank of Egypt fixing borrowing rates since the emergency cut in March, investors began looking again to benefit from their preferred interest trade as they borrow in currencies with low interest rates and invest in the domestic assets of high-yielding countries.

Egyptian bond yield is the fourth best performer among 25 emerging markets
The yield on Egyptian bonds reached 6.8% in dollars this year, making it the fourth best performance among about 25 emerging markets followed by "Bloomberg".
When adjusted for inflation, the average return on bonds denominated in local currency becomes one of the highest in the world at about 4.8%, according to Bloomberg Barclays indicators.

Investor sentiment shifted in favor of domestic debt
The US agency stated that the external financing that Egypt obtained after the recent agreements with the International Monetary Fund began to shift investor sentiment in favor of domestic debt.

She explained that the risks faced by the state may be dissipated if it witnessed a similar change in tourism, trade and remittances from abroad.

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