Morgan Stanley expects phased devaluation of Egyptian pound
Updated 12/13/2023 8:25:00 AM
Arab Finance: Morgan Stanley expects a further phase devaluation of the Egyptian pound instead of floating the short-term exchange rate, Asharq Business reported, citing a report by the bank.
The bank expects the country to proceed with its efforts in selling state-owned assets and reducing debts, anticipating officials to increase the value of the $3 billion International Monetary Fund (IMF) loan program to over $5 billion.
“Given sufficient reserves to service upcoming external debt obligations in 2024, any restructuring will likely be pre-emptive in nature. The relatively high and rising interest expense to revenue ratio into 2025 could force the authorities to take the pain upfront (soon after elections) and restructure,” Bloomberg reported, citing the bank.
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