EGX chief praises CBE decision on foreign portfolio investors' outstanding debts

The Egyptian Stock Exchange (EGX) Chairman Mohamed Omran praised Tuesday a decision by the Central Bank of Egypt (CBE) decision to fully pay all foreign portfolio investors' outstanding orders totaling USD547.2 million.

In statements to MENA, Omran said the step sends a message of confidence to foreign investors and increases the trust in success of the investment environment which will positively impact the economic conditions and the stock market.

Such a step will affect direct and indirect investments through the easy access and exit of foreign investors and receiving their assets in foreign currency.

The above orders represent balances of foreign investors that opted not to use the CBE repatriation mechanism.

Noteworthy, the CBE reconfirms the existing repatriation mechanism, which avails foreign currency liquidity to foreigners investing in the domestic Government's securities (treasury bills and bonds) as well as equity markets, given, they accessed the local market through the said mechanism, the statement issued by the CBE added.

Since inception, the mechanism has functioned with a policy of no delays and with utmost efficiency and effectiveness.

Sources: MENA