- Economic analysts feel that a steep devaluation of Egypt’s pound may be inevitable for Egypt primarily due to the increasing pressure on the financial market.
- The country will also need more IMF assistance.
- According to JPMorgan, the Egyptian pound was currently more than 15% overvalued.
Economic analysts feel that a steep devaluation of Egypt’s pound may be inevitable for Egypt primarily due to the increasing pressure on the financial market. The country will also need more IMF assistance. According to JPMorgan, the Egyptian pound was currently more than 15% overvalued.
The already fragile finances of Egypt are set to be further weakened by a combination of factors such as higher commodity and food prices and a potential fall in tourism, one of the pillars of the economy. The ongoing Ukraine- War is expected to lead to a steep drop in the arrival of Russian tourists.
Read More;
https://trendsnafrica.com/moodys-forecasts-5-5-percent-growth-for-the-egyptian-economy/
https://trendsnafrica.com/egyptian-finance-minister-reviews-macroeconomic-variables-of-economy/
JP Morgan presented two scenarios. One with no devaluation, similar to 2014/15 when the currency was allowed to depreciate by roughly 5%. The other with a larger cut as part of a new IMF package resulting in a weighted probability depreciation of 8.5% from current spot, a drop in the Egyptian pound to 17.25 per dollar. According to Refinitiv data,the Egyptian currency was recently bid at 15.72 per dollar.
