One surefire way to bring the American left and right together is an external existential threat, and in this context China, despite its enormous problems, is mentioned from time to time. This appears to be the next, ceremonial step in a careful attempt to push the divided American States out of the way and off their perch at the top:
In the last couple of years, financial news about Egypt has mainly focused on the country’s economic crisis, mounting debt and subsequent IMF bailout. However, there was some more positive news in May: The African Development Bank approved a Partial Credit Guarantee (PCG) equivalent to $345 million in renminbi as Egypt accessed the Panda bond market for the first time to finance green and social development projects.
The Abidjan-based multilateral development bank said that the PCG will allow Egypt to raise the equivalent of $500 million in the panda bond market, in which a non-Chinese entity issues bonds in Chinese currency that are placed in the domestic market of mainland China. It is often seen as an attractive funding source to businesses and sovereigns looking to diversify their funding and access low-cost capital. In 2022, the market was worth around $21 trillion but the demand for overseas yuan funding is growing.
Egypt’s fundraising also marks the first time an African country has accessed this lucrative market. [AL-Monitor]
Small in itself, but an opening that may prove attractive to borrowers who distrust American reliability. Squabbles, beware. And read Turchin.
