Egypt's net foreign direct investment (FDI) inflows surged to $2.41 billion in the second quarter from $1.76 billion in the same period the previous year, the central bank announced in a statement. Portfolio investment in Egypt rocketed from a deficit of $180.3 million in the second quarter of the last fiscal year to a surplus of more than $1 billion. Egypt's current account deficit narrowed significantly to $4.67 billion in the second quarter of the 2016-17 fiscal year while the overall balance of payments surged to a $5.13 billion surplus, propelled by a decision to float the currency. Egypt's central bank abandoned its currency peg of 8.8 pounds to the US dollar on November 3, hoping to unlock dollar inflows and stem a black market which diverted hard currency liquidity away from the banking system and stifled investment. The pound has roughly halved in value since the float, unlocking investment into Egypt's stock exchange, debt market and drawing back expatriate remittances. The move helped to narrow the current account deficit to $4.67 billion in the second quarter from $5.38 billion in the same period the previous year. The trade balance narrowed as the currency depreciation made imports more expensive and exports more competitive abroad. It reached $9.21 billion in the second quarter compared to $9.87 billion in the same period of the previous year. Source: Reuters
