Emerging Markets Rates and Currencies Handbook

Private Sector Growth by broader structural reforms. - In Feb 23’, the Government announced an ambitious Privatization/IPO program to encourage FDIs into Egypt. - A total of 32 companies were announced for divesture through IPO or by selling shares to strategic investors, with a target of $40bn annually over the coming 4 years. - As of June 23’, $/EGP is currently trading at 30.85-95 level compared to 15.71-76 level as of March 22’ close. Convertibility Convertibility • Foreign Exchange transactions (RHS) Spot FX in Egypt must be backed by a genuine commercial activity supported by documents prior to execution. • Payments between Egyptian entities in Egypt must be done in local currency, unless under certain non- exhaustive exceptions specified in the banking law apply. • All Payments have to be executed on maturity date. Hedging - FX Forwards, FX Swaps, NDFs are now permitted by the regulator with conditions as stipulated in the regulation. Primarily transactions should be backed by a genuine commercial activity and may be subject to regulatory pre- approvals • RHS deliverable forwards are now allowed onshore for certain commercial purposes (related to importation) and for dividends. • LHS Deliverable FX forwards are only allowed for export proceeds • NDF are now conditionally permitted by the regulator onshore • FX options against EGP are not permitted onshore • Derivatives: Specific authorization in the commercial register is required to deal in these products. Interest Rate - As of June 23’, total Interest rate hikes for the CBE since March 22’ are 1000 Bps to curb inflation - Interest Rates stand at 18.25%/19.25% level overnight deposit and lending rate. FX Spot FX Forwards FX Options Interest Rate Swap Interest Rate Options XCCY swaps NDFs Market Overview Onshore Market   ✗ ✗ ✗ ✗  Offshore Market ✗ ✗  ✗ ✗   Onshore Volume (MM USD Daily) Offshore Volume (MM USD Daily) Onshore Max Tenor (Or Typical Tenor For Spot) Offshore Max Tenor (Or Typical Tenor For Spot) Onshore Typical Deal Size (MM USD) Offshore Typical Deal Size (MM USD) 30 – 50 N/A T+2 N/A 0.1 - 2 N/A Limited N/A 1 year N/A 0.5 – 3 N/A N/A Limited N/A N/A N/A 1 - 5 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Bespoke hedge dependent* Bespoke hedge dependent* Bespoke hedge dependent* Bespoke hedge dependent* Bespoke hedge dependent* Bespoke hedge dependent* N/A 50 - 100 1 year 1 year N/A 1 – 5 CitiFX Pulse Capabilities  ✗ ✗ ✗ ✗ ✗ ✗ *Can also be applied to long term NDFs. Source: Citi indicative information Market opening hours and liquidity during the day Fixing FEMF1 page on Reuters 11.00, 12.30 and 14.00.