The Clap
Egypt’s Minister of Finance Mohamed Maait stated that Egypt plans to issue Chinese Yuan-denominated bonds, similar to Egyptian bonds denominated in Japanese yen.
Claps Class
Governments issue bonds denominated in foreign currency to not fully rely on local bonds, which can cause inflation
The deets
Maait said that Egypt aims to diversify its foreign debt from abroad and attract new investors. He restressed the potential of the Chinese bond market, the second-largest bond market in the world.
Why this matters
Egypt’s foreign debt rose in Q2-2022 to $145.52 billion. Egypt also seeks to meet its financing needs, especially after announcing a high deficit in the FY 2023 budget’s draft.
