The Clap
It is important that the Egyptian government strikes a deal with the IMF, as foreign investors are awaiting the decision regarding the loan and the EGP exchange rate.
The Deets
Economic pressures led to a 38% drop in bonds issued in EGP on an annual basis, to reach about $81 billion.
This IMF loan will help attract foreign investors to return to the Egyptian market.
What Investors Want
According to analysts, if the EGP were to be devalued by another 20%, and interest rates were increased by an additional 3%-4%, foreign investors may be interested to invest in the Egyptian market.
Why this Matters
Investors are demanding a more flexible exchange rate in order to express its true value, which many people see nowadays is more expensive than the actual price.
Having a more flexible EGP is one of the IMF’s demands for Egypt to receive the required loan.
Foreign investors awaiting IMF loan decision 💰
