Maait says $22 billion ‘hot money’ left Egypt

Egyptian Finance Minister Mohamed Maait said on Monday around $22 billion in short-term investment “hot-money” had exited the country as the Russian war in Ukraine has sparked huge increases in oil and wheat prices.

However, Maait said the country had managed to pay all its commitments and investors of that kind of investment had restored their own money in time.

Earlier in June, Maait said the country have learned the message and not to depend on that type of investment and could no longer depend on foreign purchases of treasuries to finance its budget, but must work to boost foreign direct investment (FDI) instead.

“It is coming just to get high yields, and once there is a shock it leaves the country,” Maait explained.

Egypt faced a similar crisis at the outbreak of COVID-19 in 2020, when some $20 billion left.