Sovereign Analysis / Global

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
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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...

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