Egypt Watch

Central Bank of Egypt admits flight of foreign investments

The Central Bank’s Balance of Payments Report, from July to December of last year, the first half of the current fiscal year 2022/2021, has revealed a significant decline in foreign investments in government bills and bonds. The report indicated that the decline began months before the Russian war on Ukraine, as 2.5 billion dollars exited the market from July to December 2021, compared to the entry of about 10.2 billion dollars in the corresponding period the previous year. The balance of payments in the same period posted a deficit of $14 million.

The Central Bank also announced an increase in the investment income balance deficit rate by 31.4% during the same period compared last year. The investment income balance deficit rose to about $7.1 billion during the first half of the current fiscal year, compared to $5.4 billion in the same period last year.