#EGP CURRENCY DRIVER#

'I think there should be a greater eye on that to prioritize better, where that government spending should be. 'We need to see greater prudence and watch where capital is being spent on specific infrastructure projects,' he said. He also added that he expects the central bank to 'prioritize economic growth over defending the pound' during the course of the year.Īngus Blair, CEO of Signet Institute, said that Egypt needs to 'really move on with speed to make changes.' Given the country's trade deficit and overall declining international reserves since 2020, Ballard added that investors should be prepared for some 'further modest downward currency adjustments.' 29.īallard, in a separate research report, revised down Egypt's GDP growth for the fiscal year 2022/2023 from 5.7% to 4.75%. 'Inflation seems likely to only rise further in Egypt in the coming months,' First Abu Dhabi Bank's Simon Ballard wrote in a report dated Mar. 'We think the hike is too small to catalyze significant capital inflows, and thus is unlikely to ease pressure on the pound or alleviate the foreign exchange scarcity issues the economy is facing,' he said in a separate note on Mar. However, Goldman's Soussa is hesitant that the move will result in any substantial easing.

#EGP CURRENCY DRIVER#

'The Monetary Policy Committee stresses that achieving a tight monetary stance is a necessary condition to attain the CBE's upcoming inflation targets of 7 percent (± 2 percentage points) on average by 2024 Q4,' it said in a statement, adding that domestic supply chain disruptions had been a key driver of inflation. 30 raised its key interest rates by 200 basis points in efforts to tame inflation. A financial gap refers to how much foreign exchange a country needs to pay off its debts.Įgypt's central bank recently on Mar. In January, the IMF also forecast Egypt's financial gap to be a figure of about $17 billion over the next four years. At Myfin online currency converter you can find 20 EGP to USD chart, exchange rate stats. However, it is contingent on the country's commitment toward an economic reform over the next four years, and one of the steps toward it is to embrace a flexible exchange rate. 20 Egyptian Pounds is 0.6471633 US Dollars as of 03:31 PM 06-28-2023. The International Monetary Fund last December approved of a $3 billion loan to salvage Egypt's ailing economy. 'The risk of further Pound weakness in the immediate term is high, particularly within the context of the first review under the IMF programme,' he said. The Egyptian Pound is subdivided into smaller currency denomination known as qirsh or millimes. He expects Egypt's inflation to peak at around 36% in the third quarter, if there are no more devaluations. 'The rising inflation trajectory is adding pressure on the Egyptian Pound, which has traded relatively flat since the devaluation in early January despite clear signs of ongoing FX liquidity shortages,' Goldman Sachs' economist Farouk Soussa wrote in a research report dated Mar. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

Egp currency