Foreign investments in Egyptian treasury bills surged in March by around 140%, rising to $32.7 billion compared to $13.6 billion recorded in February, revealed new data from the Central Bank of Egypt (CBE)
Foreign investments in Egyptian treasury bills surged in March by around 140%, rising to $32.7 billion compared to $13.6 billion recorded in February, revealed new data from the Central Bank of Egypt (CBE).
In a separate release, the CBE revealed that the repayment of foreign debts worth $7.384 billion during the Q2 of 2023, compared to $8.168 billion at Q1 of 2023. Repayments were divided into $2.249 billion in interest paid, in addition to $5.135 billion in installments paid.
In general, foreign interest in Egypt’s debt have increased since the CBE’s decision to float the Egyptian pound and increase interest rates after the Ras El Hekma deal with the UAE, according to a recent piece by Financial Times.
Financial Times revealed that investors injected $15 billion into Egyptian local bonds in 2024, most of which were poured following the announcement of Ras El-Hekma deal.
Despite increased investor interest, foreign holdings of local debt in the region remain relatively low, indicating room for further growth. In Egypt, foreign investors hold around one-tenth of local debt, suggesting potential for increased inflows, explained FT.
However, the outlook for emerging market local debt could be challenged by prolonged high US interest rates, particularly for countries like Egypt, Nigeria, and Pakistan, which face substantial debt interest payments in the coming years.
Official local figures that net foreign direct investment flows in Egypt amounted to about $10 billion during the last fiscal year FY2022/2023.
