Foreign Investors Withdraw 'Hot Money' from Egypt Amid Global Market Turmoil

Amid global market turbulence, foreign investors pulled out 7-8% of their holdings in Egyptian T-bills, converting them to U.S. dollars. Prime Minister Mostafa Madbouly stated that Egypt's flexible exchange rate helped mitigate the impact. Despite economic challenges and a high inflation rate, Egypt aims to reduce inflation below 10% by 2025-2026.

Amid Monday's global market turbulence, foreign investors sold off 7-8% of their Egyptian pound treasury bills and converted the proceeds to U.S. dollars, Prime Minister Mostafa Madbouly revealed on Thursday.

Analysts and bankers attribute the sell-off to a broader shift toward safer assets, intensified by regional political tensions and concerns about Egypt's financial stability. Madbouly emphasized that the Egyptian government's flexible exchange rate policy helped mitigate the fallout.

In a broader economic context, Egypt continues to tackle high inflation, which stood at 25.7% in July. The country aims to bring inflation below 10% by 2025-2026, as part of monetary tightening measures under an $8 billion IMF support package.

(With inputs from agencies.)