Saudi Arabia deposits $5bn in Egypt to help with attracting investments in foreign currencies

RIYADH: Saudi Arabia deposited $5 billion at the Egyptian Central Bank in accordance with directives of the Saudi King and Crown Prince on March 30.

With this move, the Kingdom will be raising its deposits in the CBE to $10.3 billion, Asharq paper reported citing a source.

The term of the deposit is a full year and can be extended by agreement between both parties, the source added.

The yield on Egypt’s $1.75 billion of bonds maturing in 2032 dropped 18 basis points to 9.42 percent after the news, according to Bloomberg

Egypt’s Cabinet announced today a draft agreement between both Egyptian and Saudi governments. Upon the agreement, the Saudi Public Investment Fund will invest in Egypt, with the completion of constitutional procedures.

This agreement aims to encourage and support the PIF to invest in Egypt, in efforts to help the country achieve its objectives in attracting investments in foreign currencies, supporting the use of national labor, and localizing modern technologies in the economy.