Foreign investors increased the size of their investments in Egyptian treasury bills during June 2015 to EGP 500m ($64m), the highest level of foreign investments in Egyptian government debt instruments since the beginning of 2015, according to Central Bank of Egypt (CBE).
Foreign investments in Egyptian treasury bills began this year with EGP 405m, those investments fell to EGP 232m in May, marking the lowest level in almost two years.
Although foreign investment in the Egyptian treasury bills increased again in June, CBE indicators confirm that it is still very far from the levels they were before the 25 January 2011 Revolution.
According to CBE, foreign investors are the second largest investors in Egyptian treasury bills, after public banks. Prior to the January 2011 Revolution, the size of investment reached about EGP 64.771bn in September 2010.
Foreign investments, especially hot money invested in treasury bills, fled from Egypt when the revolution began. These investments continued shrinking gradually until they faded away completely a year after the uprising.
Foreign investment in Egyptian treasury bills partially returned over the years following 2011, but did not approach the levels they were before the revolution to date.
“Unlike foreign investors’ position, branches of foreign banks operating in the Egyptian market increased their investments in Egyptian treasury bills dramatically during the last period. The size of investments by these branches in the bills reached about EGP 22.658bn (about $3bn),” according to CBE.
Branches of foreign banks are the fourth largest investors in Egyptian treasury bills, after public banks, commercial banks, and investment funds.
Public banks acquired 39.1% of treasury-bill balances put forward to June 2015, which amounted to EGP 531.5bn, and the size of their investment in it reached EGP 207.9bn.
According to CBE, the share of commercial banks amounted to about 34.9% of the total bills put forward to June 2015, as the value of their investment reached about EGP 185.7bn, while investment funds are the third largest investors with investments of about EGP 49.556bn.
Investments from banks specialised in treasury bills decreased during June 2015 to reach about EGP 4.39bn.