CAIRO: The value of foreign investments in Egyptian government debt instruments in the first quarter of the current fiscal year amounted to about $29 billion, according to a government official.

Egypt’s portfolio of foreign investors in its treasury bills and bonds includes sovereign funds and large Arab financial institutions, the official said.

The country has one of the highest interest rates in the world but, according to the Egyptian Central Bank, in 2020 rates fell from 12.25 percent to 8.25 percent, making it more attractive for potential investors.

The official explained that foreigners exited the government debt market at the beginning of last year, when the impact of the coronavirus pandemic began to take hold in March, but they were enticed back when some stability returned during the first quarter of the current fiscal year.

During the period of the pandemic, about $18 billion of foreign investment exited Egypt’s government debt market, seeing it drop to about $10 billion. The peak of investment was recorded in Feb. 2020, at $27.8 billion.

source: Arabnews