The Egyptian pound strengthened on Tuesday against the US dollar, backed by an increase in foreign exchange flows into the Egyptian market, reaching EGP15.99 to buy and EGP15.88 to sell.
A banking official told local media that international financial institutions and funds have made new investments estimated at about $3 billion in the past month, including nearly $1 billion in the last two days alone.
The source indicated that the market attracted about $592 million in new investments from international funds last Thursday alone, which is the highest daily rate since the coronavirus crisis started.
He added that the market received on Sunday about $367 million, explaining that increased flows of foreign investments to the Egyptian market reflect the confidence of international institutions and investment funds in the state's economic and monetary policies.
He stated that international agencies have made a strong comeback amid confidence in the Egyptian economy, and in light of the positive outlook from international rating firms and major institutions in the world such as the International Monetary Fund (IMF) and the World Bank.
He pointed out that the latest figures confirm that Egypt has become the best destination for investment among all emerging markets.
The increase in foreign investment to the Egyptian market reflects the confidence of international institutions and investment funds in the country's economic and monetary policies, according to the official.
Recently, Egypt has received cash injections from the IMF and the international market, estimated at $10 billion, with $4.8 billion from the IMF including $2.8 billion granted as part of the fund’s rapid financing instrument (RFI) package.
In addition, $2 billion was pumped into the country as the first tranche of the $5.2 billion credit line agreement, in addition to $5 billion from the international bond market.
Earlier this week, the IMF issued a report saying Egypt’s adoption of a proactive approach helped limit the fallout from the coronavirus pandemic.
“Egypt was one of the fastest-growing emerging markets prior to the pandemic. But significant domestic and global disruptions from the crisis have affected the outlook and shuffled policy priorities,” according to the report.
The report pointed out that the “bold economic reform program that Egypt adopted from 2016 greatly enhanced the economy’s resilience”, and allowed the government to swiftly launch a comprehensive pandemic response, noting that despite significant progress to reduce poverty and inequality, challenges remain.
