Economics

Egypt Says Lower Yield Unlikely to Dim Demand for Carry Trade

Real return of around 3% would be ‘reasonable,’ Maait says
Average maturity to increase to four years from 1.9 years soon

Maait said Egypt has yet to reach an agreement with the IMF, but the relations remain robust.(Source: Bloomberg)

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By Benjamin Harvey, Mirette Magdy, and Paul Wallace

October 3, 2019 at 4:00 AM UTC

Updated on

October 3, 2019 at 10:00 PM UTC

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Egypt’s Finance Minister Mohamed Maait said the country’s local-currency debt will remain attractive even as the central bank joins a global easing cycle.

Policy makers reduced interest rates by 250 basis points in the past two months. And Maait, while stressing the central bank’s independence, said a return of 3%, plus or minus 1 percentage point, would be “a reasonable real interest rate that keeps Egypt attractive.”