Foreign investors are still buying our treasuries
FROM THE DEPT. OF GOOD NEWS- Foreign holdings of Egyptian treasury bills jumped to USD 20.8 bn (c. EGP 327 bn) as of the end of April, up from USD 20 bn (EGP 314 bn) in March, according to central bank figures (pdf) released yesterday. Investors put almost USD 3 bn into the short-term debt instruments during the first four months of the year as sentiment continued to improve following the dramatic sell-off in emerging markets in March 2020.
Investment in bills + bonds hit a record high earlier this year: Foreign inflows into Egyptian debt surged to a record USD 28.5 bn (c. EGP 447 bn) in February, making up for outflows suffered during the covid-induced sell-off last year and bringing holdings back above pre-covid levels. Sentiment is buoyed by Egypt’s high real interest rate, which is among the best in the world, low currency risk, and supportive economic policies being pushed by both the Central Bank of Egypt and the Madbouly government.