Egypt: Carry trade alive and well once again
- Egypt now has among the highest real interest rates in the world, ranging from c7-8.5% across the sovereign bond curve
- Foreign holdings of T-bills fell by US$13bn from February to May, but picked back up with US$3bn of inflows this month
- EGP overvaluation is the main risk, but ample reserves and external funding sources will promote FX stability
This report is independent investment research as contemplated by COBS 12.2 of the FCA Handbook and is a research recommendation under COBS 12.4 of the FCA Handbook. Where it is not technically a res...