This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Egypt’s dollar bonds traded 3-5% lower on Tuesday following uncertainty over the country’s agreement with the IMF. As per Egypt Today, the IMF’s first review was postponed due to Egypt’s urgent need for dollar liquidity and its inability to meet agreed-upon requests that includes implementation of a flexible exchange rate. Market participants seem concerned given President Abdel Fattah El-Sisi’s recent comments, where he referred to the exchange rate as a matter of “national security” and mentioned that the government cannot make decisions that would adversely impact the Egyptian people. Late last week, Citigroup strategists expressed concerns, stating that Egypt’s privatization plan is “increasingly falling behind targets”. They added, “Idiosyncratic risks remain elevated in Egypt. The prospect of a delayed IMF agreement is increasing as the pace of privatization appears insufficient to meet its quantitative performance criteria.”
Egypt’s 6.875% 2040s led the decline, down 2.5 points to 51.9, yielding 14.65%.
For more details, click here