{"id":626827,"date":"2018-07-12T03:38:17","date_gmt":"2018-07-12T03:38:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/12\/is-the-carry-trade-approaching-a-tipping-point\/"},"modified":"2018-07-12T03:38:17","modified_gmt":"2018-07-12T03:38:17","slug":"is-the-carry-trade-approaching-a-tipping-point","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/12\/is-the-carry-trade-approaching-a-tipping-point\/","title":{"rendered":"Is the carry trade approaching a tipping point?"},"content":{"rendered":"

<\/a> Is the carry trade approaching a tipping point?<\/strong> CBE data on the balance of payments<\/a><\/u> in April indicated that the foreign holdings of Egyptian debt fell 1.25% m-o-m to EGP 375.5 bn \u2014 the first drop in foreign portfolio investments in 2018, according to the local press<\/a><\/u>. As our friend EFG Hermes lead economist Mohamed Abu Basha suggested to Al Mal earlier this week<\/a><\/u>, \u201chot money\u201d investors have curbed somewhat their appetite for Egyptian treasuries as the central bank\u2019s started guiding interest rates down 1H2018. Early signs among rate watchers are that we\u2019re looking at a slower pace of easing in the back half of the year \u2014 good news for the carry trade, not necessarily for the rest of us who were hoping lower rates might spark corporate borrowing for replacement capex, at least.<\/p>\n","protected":false},"excerpt":{"rendered":"

Is the carry trade approaching a tipping point? CBE data on the balance of payments in April indicated that the foreign holdings of Egyptian debt fell 1.25% m-o-m to EGP 375.5 bn \u2014 the first drop in foreign portfolio investments in 2018, according to the local press. As our friend EFG Hermes lead economist Mohamed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-626827","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"083b76bd-28f5-4dde-8694-e33f2fd20a64","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[626822],"teaser":"","voice_url":""},"yoast_head":"\nIs the carry trade approaching a tipping point? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/07\/12\/is-the-carry-trade-approaching-a-tipping-point\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is the carry trade approaching a tipping point?\" \/>\n<meta property=\"og:description\" content=\"Is the carry trade approaching a tipping point? CBE data on the balance of payments in April indicated that the foreign holdings of Egyptian debt fell 1.25% m-o-m to EGP 375.5 bn \u2014 the first drop in foreign portfolio investments in 2018, according to the local press. 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CBE data on the balance of payments in April indicated that the foreign holdings of Egyptian debt fell 1.25% m-o-m to EGP 375.5 bn \u2014 the first drop in foreign portfolio investments in 2018, according to the local press. 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The CBE\u2019s move to cut interest rates comes amid concerns that higher US interest rates will fuel a battle for funds among emerging markets, writes Bloomberg\u2019s Ahmed Feteha. \u201cThere was a view that with inflation slowing so fast the central\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/3\/1770.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":624367,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/06\/egp-could-lose-up-to-10-of-its-value-against-the-usd-by-2020\/","url_meta":{"origin":626827,"position":1},"title":"EGP could lose up to 10% of its value against the USD by 2020","author":"enterpriseam admin","date":"6 September 2018","format":false,"excerpt":"**#1 Is the central bank propping-up the EGP amid the ongoing emerging markets selloff? Capital Economics suggests in a report out yesterday that the central bank has \u201cintervened to support the EGP in recent months.\u201d The report points as evidence to the stability of the EGP throughout the emerging markets\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":573292,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/the-tides-are-turning-for-foreign-portfolio-investment-in-egypt-as-investors-return-to-favorite-carry-trade\/","url_meta":{"origin":626827,"position":2},"title":"The tides are turning for foreign portfolio investment in Egypt as investors return to \u201cfavorite\u201d carry trade","author":"enterpriseam admin","date":"28 July 2020","format":false,"excerpt":"The tides are turning for foreign portfolio investment in Egypt as investors return to \u201cfavorite\u201d carry trade: Foreign holdings of Egyptian sovereign debt rose to USD 10.6 bn by the end of June, and the first two weeks of July saw another USD 3 bn of inflows to local debt,\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/7\/223.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":630850,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/04\/ems-can-weather-a-more-hawkish-fed\/","url_meta":{"origin":626827,"position":3},"title":"EMs can weather a more hawkish Fed","author":"enterpriseam admin","date":"4 March 2018","format":false,"excerpt":"From the department of missing the point: \u201cInvestors nervous about whether the bull case for emerging-market assets can weather a more hawkish Federal Reserve can take solace in the outlook for consumer prices,\u201d Yumi Teso and Masaki Kondo write for Bloomberg. Despite listing EMs as a good investment overall, by\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/3\/1302.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":596258,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/22\/cbe-likely-to-cut-rates-today-economists\/","url_meta":{"origin":626827,"position":4},"title":"CBE likely to cut rates today -economists","author":"enterpriseam admin","date":"22 August 2019","format":false,"excerpt":"There\u2019s a growing consensus for a rate cut today: The Central Bank of Egypt (CBE) will cut its benchmark overnight deposit rate by \u201cat least\u201d 100 basis points when it meets later today as easing inflation and a stable EGP offset concerns of a sell-off, according to 10 of 12\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/8\/580.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":641226,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/09\/17\/could-a-possible-sell-off-by-carry-traders-see-the-egp-drop-in-value-against-the-usd\/","url_meta":{"origin":626827,"position":5},"title":"Could a possible sell-off by carry traders see the EGP drop in value against the USD?","author":"enterpriseam admin","date":"17 September 2017","format":false,"excerpt":"Could the unwinding of carry trade positions see the EGP drop against the USD? The EGP could slide to something on the order of EGP 20 to the greenback by 2019, Capital Economics\u2019 Jason Tuvey told CNN Arabic in an interview on Thursday. 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