Risks of Egypt's dollar-denominated debt fall to lowest level since 2014

Arabic - Egypt’s dollar-denominated sovereign risk premium fell to its lowest level since 2014, signaling a marked improvement in investor sentiment toward the Egyptian economy after years of financing pressures and foreign currency shortages.

JPMorgan data showed that the spread between yields on Egyptian dollar bonds and U.S. Treasury bonds stood at 322 basis points at the end of last week. Although the spread widened slightly amid a broader sell-off in debt markets, it remains roughly 150 basis points lower than its March level and has declined by about 12 percentage points compared to levels three years ago, when Egypt faced elevated financial risks, Bloomberg reported.

Egypt has gradually emerged from years of dollar scarcity and debt pressures, benefiting from improved foreign exchange inflows and progress in its economic reform program.

The International Monetary Fund’s latest review in late July bolstered investor confidence after unlocking approximately $1.8 billion in financing, helping Egyptian bonds deliver among the best performance in emerging markets during August.

Meanwhile, data from Egypt’s Central Agency for Public Mobilization and Statistics revealed that the value of Egypt’s exports to various countries rose by 7.1% in the first half of 2026 compared to the same period last year, reaching $28 billion, up from $26.1 billion, an increase of $1.9 billion.

Egypt’s imports from various countries totaled $60.4 billion in the first half, up from $48.9 billion, an increase of $11.5 billion, or 23.6%.

The value of Egypt’s total trade with various countries also rose to $88.4 billion, up from $75 billion, an increase of $13.4 billion, or 17.9%.