Egypt’s economy absorbed Iran war shock better than expected, but vulnerabilities remain -IMF
· Egyptian market news · MISR
Egypt’s economy absorbed the Iran war better than almost anyone could have expected seven months ago IMF’s latest Egypt assessment
The FX flexibility buffer worked:
The reason, Saada says, is structural.
Non-resident holdings of local currency T-bills also fell from USD 39.1 bn in February to USD 22.2 bn in early April
Disinflation outpaces Fund baselines: slowed to 14.5% in August
Capital market access returned: fell to its lowest since 2014 USD 1 bn Social Eurobond in May USD 500 mn Samurai bond in June return to global debt markets
The vulnerabilities that remain
But the underlying vulnerabilities haven’t gone away.
On the sovereign-bank nexus:
On lengthening debt maturities:
IN CONTEXT- roughly USD 5.9 bn Banque du Caire’s long-delayed IPO 20% of Misr Life Ins.
On debt itself: Economist Intelligence Unit