Egypt . The decline in bond investments puts pressure on banks’ ratings

Radwa El-Swaify, Head of Research at Al-Ahly Pharos Securities Brokerage Company, described the decline in investments in debt instruments as a phenomenon in various emerging market countries and not exclusive to Egypt.

Al-Swaify stated in an interview with “Al-Arabiya” that exiting fixed income portfolios is a decision based on fears of a US interest rate hike and does not have a strong link with the strength of the return on it or the village in which he invested.

He pointed out that foreign investment in Egyptian treasury bills fell 7% in November from the previous month to around £ 325 billion.

He explained that the Central Bank of Egypt announced that the total balances in to be in Treasury bonds recorded £ 1.4 trillion last year, compared to £ 1.47 trillion in 2020.

Foreign investors have pumped in about $ 970 million since the beginning of the year through January 16 in Egyptian financial instruments, including long-term bonds and treasury bills.

He felt that the pressure on the classification of Egyptian banks was due to the decline in investments in fixed income instruments in which banks manage the investment process for investors.

As for inflation, El-Swaify predicted that Egyptian markets would be in able to overcome in security the pressures of the current wave of global inflation.

Read More About: Business News