Bloomberg: Foreign Investments Rise in Egyptain Treasury Bills

After investors pulled USD bns during the global market panic in the spring caused by the Covid-19 pandemic, the foreigners increased investments in Egypt’s Treasury bills and bonds to $21.1 billion in mid-October, according to Bloomberg's report issued on Sunday.

Moreover, the Finance Minister Mohamed Maait explained, that central bank has seen huge demand for EGP-denominated debt while investors lapped up the government’s eurobond and green bond issuance earlier this year.

Foreign Investments

In addition, the stable outlooks from the three major rating agencies, has only strengthened foreign inflows, which now account for 9.4% of total EGP holdings, up from 5.2% at the end of June, according to the Finance Ministry’s debt management unit head Mohamed Hegazy.

Investments in Egyptain Treasury Bills

Noteworthy, Egypt’s recent loan agreements with international lenders has also been a stabilizing factor, as well as the rebound came after external debt fell for the first time in nearly 5 years in 3Q 2019.

Finance Minister Mohamed Maait

The shift in outlook is due to the government’s increased spending on infrastructure as well as, the central bank measures which include interest rate cuts. In addition, the Egypt’s strategy of prioritizing investment in transport, renewable energy, oil and gas.