1/x Egypt again acts firmly and responsibly to mitigate the negative impact from rising commodity prices and delayed recovery of tourism revenue, putting a strain on current account and budget deficit. 2/x Last week's devaluation of approx 15%, was followed by an interest hike and several measures, including subsidy adjustments, to lessen the impact on the poorer parts of the population.

Thread:
1# The decision by @cenbank to ban many investors from the OMO auctions has had an huge effect on local bond yields, with short term rates almost halved since October. 2# Inflation is sticky at 11-12%, and not expected to come down anytime soon.

From a broker this morning: "The Case for Egyptian Equities: Our Egyptian coverage is trading at 8.9x 12-month forward earnings, with a 2019-21 EPS CAGR of 20% [...], with a market cap weighted upside of 39%. Egypt’s discount to EMs is near an all-time high". #Egypt And similar arguments can be made for most of our investment universe, like #Nigeria #Pakistan etc. But as long as global investors continue to prefer to invest in negative yielding treasuries instead of almost certain growth discounts will remain.