Foreign investors still love Egyptian debt
Foreign investors’ love story with Egyptian debt continued through May: Foreign inflows into Egyptian treasury bills continued to gain steam last month, rising to USD 22.3 bn (c. EGP 350 bn) as of the end of May from USD 20.9 bn (EGP 327 bn) in April, according to central bank figures (pdf). Investors put some USD 3.3 bn into short-term local debt between January and May on the back of a strong rebound in emerging markets.
But EGP bonds appear to have seen slight outflows: Total foreign holdings of bills and bonds have remained flat since hitting a record USD 28.5 bn in February, despite more than USD 2.1 bn entering short-term debt during the same period. At the end of May, total holdings stood between USD 28-29 bn, according to comments made by Finance Minister Mohamed Maait earlier this month.
Investment in Egyptian debt has surged in the 12 months since the covid market crashas investors returned after selling down their holdings during the emerging-market sell-off last year.