Egypt’s currency float boosts foreign investment: bourse chief

Foreign investors have bought a net 11 billion Egyptian pounds ($615.90 million) worth of shares since the country floated its pound currency in early November 2016, the stock exchange’s chairman Mohamed Omran said Sunday.

The central bank floated the Egyptian pound last year 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 $12 billion, three-year loan programme with the International Monetary Fund. 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 15 billion Egyptian pounds in foreign investment since 2013, Omran told a news conference.

Omran told Reuters that the stock exchange expected to start trading in bonds in the first quarter of next year.

Source: Reuters