Egypt restricts GDR deals to pounds for local investors

Egypt's bourse on Monday ordered that Egyptian investors who buy global depository receipts (GDRs) by purchasing shares on the Cairo exchange in Egyptian pounds may only receive their returns in that same local currency. The move appeared aimed at eliminating an avenue for acquiring dollars amid a shortage in foreign currency, which has created a black market that the central bank has promised to stamp out.

The value of all transactions by "Egyptian customers, whether buying, selling or converting to or from GDRs" will be provided in the same currency they were issued in, the bourse said in a statement. A market source told Reuters that regulators had recently discovered that companies and individuals were buying Egyptian stocks with GDRs and selling them to achieve dollar-denominated returns.