Economic reforms boost appetite for the Egyptian pound
Friday 17/February/2017 - 09:29 AM
Foreign investors are heading back to Egypt after the government implemented a string of reforms، helping drive the Egyptian pound up more than 10 per cent against the dollar and easing a foreign currency crisis، Financial Times reported.
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 subscribed، while the economy has been boosted by an increase in remittances from Egyptians working abroad.
The renewed investor appetite for Egypt follows the government’s decision to increase value added tax and slash energy subsidies to seal a $12bn International Monetary Fund package in November.
Radwa El-Swaify، head of research at Pharos Holding، an investment bank، said changing buying patterns، with Egyptians turning to cheaper، locally produced goods instead of imports، has also reduced demand for the dollar.