World Bank's International Finance Corp planning Egyptian currency swaps
The International Finance Corp is considering whether to issue local currency bonds in several Middle Eastern countries to fund investments there, reported Reuters.
"In the Middle East the challenge is not the lack of capital but the access to dollars by local banks," Reuters quoted IFC Chief Executive Jin-Yong Cai as saying. "Just like we did in other places globally, we'll come up with an instrument to swap dollars for local currency in Egypt. We need local currency and some other private investors need dollars. It's in a way a hedging for investments."
Cai reportedly said that the IFC needed local currency supplies in Middle Eastern countries to finance its projects, and would use local currency bonds as one way to obtain them. "We're talking to governments in a few countries where we can issue local currency bonds," he is quoted as saying.
"In many countries there's plenty of money sitting not in use. We will sell local currency bonds and bring more investors into the capital markets. It's one way of mobilising money into bankable projects," he reportedly said.
- Why is the Israeli shekel so weak?
- What doesn't kill you, makes your stronger: why the Arab Bank is likely to emerge from the Israeli lawsuit 'unscathed with flying colors'
- Too foreign? An inside look into the struggles of foreign banks in Saudi Arabia
- A clash of civilizations: are foreigners newly entering the Saudi stock market about to face a culture shock?
- From tweets to public outrage: understanding Turkey's bitterness towards credit rating agencies