S&P expects Egypt to devalue EGP to 40/USD within few weeks
Updated 3/5/2024 9:35:00 AM
Arab Finance: S&P Global Market Intelligence expects Egypt to devalue its local currency to EGP 40 per USD within the next few weeks, before gradually reducing it to EGP 45 per USD within the next five to six months, Asharq Business reported.
It added that the Ras El-Hekma deal is likely to provide sufficient reserves for the Egyptian authorities to devalue the pound and move to a more flexible exchange rate, S&P Global Market Intelligence said.
S&P Global also expects further tightening of monetary policy during 2024 to contain soaring inflation pressures.
The agency’s expectations indicate that Egypt’s GDP growth will slow down to 2.8% in the current fiscal year 2023/2024, compared to 3.7% a FY earlier amid the repercussions of the war in Gaza.
It also projects that the economy will expand by 5.3% in the upcoming FY 2024/2025.
Furthermore, the agency estimates losses of the Suez Canal at approximately $375 million per month, or about $2.25 billion in the six-month period ending in June, due to the Red Sea disruptions.
Related News
