Return of Hot Money to Egypt's Debt Instruments and Rise of the Pound
Published
Inflows of hot money into Egyptian debt instruments have returned after a period of capital outflows from the market. Hot money refers to short-term investments that can enter and leave a country quickly. Debt instruments are means by which the state borrows from investors, such as bonds and treasury bills.
On Wednesday, transactions by Arab and foreign investors recorded net selling worth $391 million. This means that the value of the debt instruments they sold was greater than the value of those they bought that day.
At the same time, reports indicated that the Egyptian pound rose following these developments. The pound's exchange rate is linked to the movement of foreign money, because the entry of foreign currency into the market can increase demand for the local currency.
Financial markets are following the movement of investments in Egypt closely. It is expected that the coming days will show whether these positive flows will continue or whether the movement of money will change again.
Sources: العربية
More Egypt news
- KemetX summit in Egypt targets $5 billion for startups
- Al-Ayyat train collision sparks parliament debate on rail safety
- MSCI adds Telecom Egypt and drops Eastern Company from index
- Cairo Criminal Court Adds 35 Entities and 36 Individuals to Terrorism Lists
- Significant Drop in Gold Prices in Egypt as the Price Gap Widens
- Egypt Sees Notable Progress in Entrepreneurship and Investment Attraction for Startups
- vivo Egypt Plans to Deepen Local Smartphone Manufacturing
- Egypt's Under-17 National Team Begins Its African Qualifiers Campaign Against Tunisia