x

Abu Dhabi, UAESunday 16 December 2018

Egypt gets boost as foreign currency inflows rise

Stock exchange expects to start trading in bonds in the first quarter of next year

Egypt has seen a rise in foreign investment. Asmaa Waguih / Reuters
Egypt has seen a rise in foreign investment. Asmaa Waguih / Reuters

Foreign investors have bought a net 11 billion Egyptian pounds (Dh2.26bn) worth of shares since the country floated its currency last November, the stock exchange's chairman Mohamed Omran said on Sunday.

The central bank floated the Egyptian pound in November to attract foreign capital after years of political instability drained the country's reserves, and the currency has since more than halved in value.

Foreign currency flows have also been boosted after Egypt signed a US$12bn, three-year loan programme with the IMF. The programme calls for radical economic reforms, including energy price increases and the introduction of a value-added tax.

Egypt's stock exchange has attracted a total of 15bn Egyptian pounds in foreign investment since 2013, Mr Omran told a news conference.

He said that the stock exchange expected to start trading in bonds in the first quarter of next year.

* Reuters