Bloomberg: Egypt's Bonds Log Best Yields Among Peers

By: Taarek Refaat

WASHINGTON, Mar. 1(SEE)- Bloomberg announced on Friday that Egyptian bonds gained 5 percent in February, making it the best among its peers in emerging markets.

According to data compiled last month, the bonds also recorded their best annual performance, while the Egyptian pound recovered to two years high against the greenback.

Bloomberg said that the IMF's approval of the fifth tranche and its applauding of the Egyptian government's economic reform contributed to the flow of Foreign Direct Investments (FDI).

The financial company added that the decision to liberalize the exchange rate of the Egyptian currency has increased the competitive advantage of exports, expecting the economy to expand in the current fiscal year. "We have high hopes in the Egyptian economy and we are confident that the country will continue its reforms even after the IMF program concludes," said Gregory Smith, a fixed-income strategist at Renaissance Capital.

"The Egyptian economy is enduring a genuine path in light of the structural reforms and proper implementation adopted by the government," he added.

Egypt had set a model for economic reform, highlighting its attractiveness among emerging markets and boosting the country's ability to reduce debt levels.

The upward trend of Egyptian bonds, the economic reforms adopted by the government, supported by (IMF), and the sudden interest rate cut by the central bank have given positive signals to investors at home and abroad," he noted.

At the end of February, the Ministry of Finance issued international bonds worth $ 4 billion on international financial markets, signaling a successful bid after investors offered to buy double the amount offered.