World’s Best Carry Trade Here to Stay With Egypt Rates Held

Foreign investors came to Egypt for what Renaissance Capital said could be the “best reform story” in emerging markets and stayed for this year’s biggest carry-trade return.

Just one cut in interest rates by Egypt in over a year, coupled with a dovish shift by global central banks, has powered gains in the pound that are second only to Russia’s ruble among all currencies tracked by Bloomberg in 2019. With the currency strengthening and yields still attractive, foreign holdings of local debt have surged almost 40% this year through April.