Egypt's PM assures stability amid movement of ‘hot money’

Egypt is not concerned about the inflow and outflow of foreign investments in its debt instruments, commonly known as “hot money”, Prime Minister, Mostafa Madbouly, said yesterday..”

Madbouly stressed: “The exit of investors from debt instruments has been compensated from the local market, and there is full coordination with the Central Bank.”

“Foreign investors have recently exited from debt instruments, but at a high price, unlike previous instances. The market remains stable, and we are not facing any shortage or crisis in the availability of US dollars.”

Global financial markets have been in turmoil since Friday, leading to a sell-off in stocks and a drop in the market value of listed companies worldwide by $6.4 trillion. This was accompanied by an exodus of investors from debt instruments globally.

Madbouly remarked: “The world experienced a week of confusion that impacted Egypt, leading to losses in the Egyptian stock market. The recent international developments have significant economic repercussions for Egypt and the rest of the world.”

“The funds that exited the Egyptian market were from the local market and were not part of international reserves,” he explained, affirming that there will be no return to a dollar crisis and that the country remains committed to a flexible exchange rate.

As of the end of July, Egypt’s foreign currency reserves exceeded $46 billion. “The state has secure sources of foreign currency, and we have a strategy in place to ensure the availability of foreign reserves and liquidity,” Madbouly stated.

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