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World’s Best Carry Trade Thrives With Egypt’s Rates on Pause

  • Egyptian pound is one of the world’s best performers this year
  • Inflation remains well below mid-point of central bank target
Pedestrians attend a market in Cairo. 

Pedestrians attend a market in Cairo. 

Photographer: Mohamed el-Shahed/AFP via Getty Images

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The world’s best carry trade is proving resilient, especially now that a pause in Egypt’s easing cycle keeps its interest rates elevated.

The Egyptian pound is delivering another strong performance this year following a record appreciation in 2019. That’s enticing traders who borrow in currencies where rates are low and invest in the assets of countries where they are high to turn to Egypt.