Japan’s MUFG expects further devaluation of EGP soon
Updated 8/30/2023 3:28:00 PM
Arab Finance: Japan-based Mitsubishi UFJ Financial Group (MUFG) is anticipating a further devaluation of the Egyptian pound soon amid the current shortage of foreign currency, Asharq Business reported.
The Central Bank of Egypt’s (CBE) policy applied to manage the exchange rate by restricting access to foreign currency has impacted the country’s economic activities, the bank stated.
On the other hand, the expected devaluation would boost foreign direct investments (FDI) and reactivate the country’s agreement with the International Monetary Fund (IMF), it added.
The bank is also anticipating inflation rates to carry on rising amid concerns of devalued EGP and shortage in food supplies.
Moreover, the Japanese group is forecasting the CBE to maintain interest rates in the coming period as an attempt to achieve price stability.
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