Expectations to reduce interest in Egypt pay foreigners to return to stocks and bonds

Foreign investment in Egypt is on its way to bonds and stock market, instead of treasury accounts, amid the expectation that the central bank gradually begins to reduce interest from the highest historical levels. 5 Bankers and experts in the financial markets indicated to Al -Sharq after the transformation of the compass of foreign investment to equities and bonds, since the end of the Treasury accounts for 12 months by the end of 2024. It is expected that the Central Bank’s monetary policy committee will hold its first meeting for this year, in the midst of In the inflation. The Central Bank of Egypt also reads. and Treasury accounts for sale since the beginning of this year, contributed to lowering the pressure between banks on the dollar request to pay the price of foreign exit, which recently dropped the dollar exchange rate. The amount of market transactions between banks in Egypt (Interbank) to buy and sell the dollar in the second week of January amounted to $ 900 million compared to more than one billion dollars per week during last December, showing the relative decline in demand for the dollar amid the supply, according to 4 bankers who spoke to Al -Sharq, provided their names are not published. ‘Interbank’ is a common market for banks with the aim of providing local and foreign currencies between banks working in Egypt. Also read: Egyptian business people have promised to raise investments by reducing interest, the head of one of the major private banks in Egypt. He added: “The demand for foreigners after investing in the pound in the stock market and the purchase of local bonds utilizes the high interest rates in light of the increasing possibilities of the central interest rate on the dollar.” Mohamed El -ethisi, head of the National Bank of Egypt, the largest bank in the country, said in television statements on January 5: “In two days, we received investments from foreign agents in the Treasury accounts worth $ 130 million”, and “we will not be able to offer new bank certificates with high returns, but the contrary.” Moving the bills to the Mahmoud Najla effects, executive director of monetary and fixed revenue markets at Al -Aahly Financial Investment Company, explained that there is a major shift in foreign investment from treasury accounts to effects due to the expectation of the reduction of interest rates. He added, “With the payout of the International Monetary Fund segment, upon completion of the review with Egypt, and the approach of the monetary facilitation course, the appetite of foreigners increased to pump new investments into the bonds.” Najla’s statements agreed with the head of one of the government banks, which in turn told Al -Sharq that the foreigners have transformed the outcome of their investments in short -term rates in medium -term effects to take advantage of high interest rates in the midst of the central interest rates. During the mid -last December, the Egyptian stock exchange data showed that foreign investors bought local treasury bonds for 3 years of the secondary market, with approximately $ 1.8 billion more than twice at a 26.24% high interest rate with two percentage points of the price of bonds that immediately spread into the bid of the central bank. Foreigners return to the stock market and at the level of the stock market, foreigners recorded a net purchase on the Egyptian Stock Exchange during the January 5 to 9 period, with a value of 9.2 million pounds, after excluding the transactions. Ahmed Murshid, Head of Financial Consultation at the Azimot Egypt Enterprise for Fund Management and the Governor of Securities, which is attributed to Al -Sharq in his speech, the entry of foreigners in equity investments, to “benefit from the low market values ​​of limited companies, and it is also noticed that outdoor returns are strong.” The advantage of the debt instruments, the Deputy Chief of the Treasury sector in one of the banks, told Al -Sharq that the increase in foreigners to buy Treasury accounts and bonds during the current period is due to the fall in the interest rate on the debt instruments faster. The average yield price on the Egyptian Treasury accounts has continued to fall over the past month, reaching the last bid between 26% and 27.3%, after more than 31% in previous proposals.