FILE - Minister of Finance Amr el-Garhy
DUBAI – 10 February 2018: Foreigners have invested a total of around $20.3 billion in Egyptian debt instruments since the Egyptian pound flotation in November 2016 and until February this year, Finance Minister Amr el-Garhy said Saturday.
Foreign appetite for Egypt’s domestic debt has been on the rise since the Central Bank of Egypt (CBE) floated the currency in November 2016.
“It’s normal to witness a decline in demand [for domestic debt instruments] amid expectations of an upcoming interest rate cut given the recent fall in inflation," Garhy told Egypt Today on the sidelines of the third annual Arab Fiscal Forum in Dubai.
The forum is organized by the Arab Monetary Fund and the International Monetary Fund (IMF) in Dubai, in preparation for the annual World Government Summit, which will kick off Sunday, February 11.
Egypt had embarked on a bold economic reform program that included the introduction of taxes, such as the Value added tax (VAT), and cutting energy subsidies, with the aim of trimming the budget deficit.
The country has floated its currency in November 2016, after which it clinched a $12 billion loan from the IMF.