Egypt considers issuing bonds in China’s yuan
Saudi Arabia may also price oil sales in the Chinese currency.
Egypt may soon sell bonds that are priced in China’s currency the yuan.
Minister of Finance Mohamed Maait made the announcement yesterday alongside the People’s Republic’s Ambassador in Cairo Liao Liqiang. The move would help diversify Egypt’s financial resources and target China’s large bond market, the state-owned Al-Ahram reported.
Bonds are a type of financial security that represent the holder’s obligation to repay the buyer. Governments issue bonds to help finance their expenses.
Why it matters: Egypt has pursued several new bond strategies recently. The country is currently preparing to sell Islamic bonds. An Islamic bond, or sukuk, complies with Islamic law’s prohibition on usury. In February, Egypt named six banks to manage the future sukuk sale. Last year, Egypt issued bonds in Japan’s currency the yen.
