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