Foreign investments in Egyptian treasury bills hit $500 million since pound float

Foreign investments in the Egyptian treasury bills have reached $500 million since the country’s central bank devalued the local currency on November 3rd, finance minister said Monday.

Egypt is targeting foreign investments ranging between $8-10 billion in the treasury bills in the coming period, Finance Minister Amr el-Garhy said during a speech in an economic conference in Cairo.

Foreign investments, especially hot money invested in treasury bills, fled from Egypt when the revolution began. These investments continued shrinking gradually until they faded away completely a year after the uprising.

Foreign investment in Egyptian treasury bills partially returned over the years following 2011, but did not approach the levels they were before the revolution to date.

On November 3rd, Egypt’s central bank decided to freely float the pound and raise key interest rates as part of a set of reforms aimed at alleviating a dollar shortage and stabilising the national flagging economy. CBE also said there will be no limits on foreign currency deposits or withdrawal for both individuals and firms, and no conditions will be imposed on the depositing of foreign currency.