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Thursday, 16 February 2017

Economic reforms boost appetite for the Egyptian pound

Economic reforms boost appetite for the Egyptian pound:

"Foreign investors are heading back to Egypt after the government implemented a string of politically sensitive reforms, helping drive the weak Egyptian pound up more than 10 per cent against the dollar and easing a foreign currency crisis. The pound has strengthened by about 14 per cent against the greenback since the beginning of the month, during which time Egypt sold more than a $1bn worth of treasuries to foreign investors. Cairo also issued a $4bn eurobond at the end of January that was three times oversubscribed, while the economy has been boosted by an increase in remittances from Egyptians working abroad. “We are starting to turn a corner because now there is liquidity and the dollar is coming down,” said Mohamed Abu Basha, economist at EFG-Hermes, a regional investment bank. “Companies now say they are finding the dollars they need in the banks and some are holding off buying because the price will come down.”"

'via Blog this'