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Eurasia
17/03/2024 18:30
Most international investors in recent years have shied away from the government's domestic securities amid fears of currency devaluation and concern about taking back money from a country suffering from a severe dollar shortage.
In just two weeks, a $35 billion investment deal with the UAE, an expanded $8 billion loan from the International Monetary Fund, a 600-basis-point interest rate hike and an exchange rate shift put the domestic fixed income market back into the spotlight.
After the positive developments, Moody's revised Egypt's outlook from negative to positive, attributing this to "significant official and bilateral support" and "policy steps taken" over the past days, but keeping the country's credit rating at Caa1, which still means sovereign debt carries very high risk. Goldman Sachs Farouk Sousse told clients in a note that the latest developments had revived "the near-term investment hypothesis in riskier Egyptian assets."
The Chinese president is meeting with the leaders of five Central Asian states. The region's role is becoming increasingly important, so it is no surprise that a geopolitical race has begun.
As Washington aims to decrease its trade deficit and strengthen domestic production, global value chains are facing new pressures to restructure. This change poses significant challenges for both European and Chinese producers as the flow of decade-long input and final good channels is disrupted. Is this a new opportunity for the two economic zones to further strengthen their relationship thereby mitigating some of the negative effects of US trade policy?