Capital Economics expects 23% fall in EGP rate against USD
Updated 12/10/2023 7:21:00 AM
Arab Finance: Capital Economics projects a 23% drop in the exchange rate of the Egyptian pound to reach EGP 40 against the US dollar during the upcoming monetary policy meetings of the Central Bank of Egypt (CBE), Arab World Press (AWP) reported on December 7th.
The decision could be made as near as the CBE’s meeting on December 21st, Capital Economics added in a research note.
It noted that Egypt's postponement of taking action regarding its local currency threatens a less regulated adjustment of the exchange rate in the future and pushes inflation higher.
In October, the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva said Egypt would "bleed" valuable reserves if it does not devalue its currency once more.
In September, Standard Chartered Bank expected a fourth devaluation, possibly the last, of the Egyptian pound.
Japan-based Mitsubishi UFJ Financial Group (MUFG) and S&P Global Ratings echoed the same sentiment before.
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