Deutsche Bank says 4th EGP devaluation unlikely to resolve Egypt’s economic challenges
Updated 6/20/2023 1:22:00 PM
Arab Finance: Deutsche Bank says that a fourth devaluation of the Egyptian pound is unlikely to resolve the country’s economic challenges, the bank stated in a recent research note.
The bank added that another devaluation “could even prove counter-productive in attracting a return of sustainable inflows to Egypt.”
The report showed that Egypt’s import demand is expected to remain downcast, while tourism revenues are predicted to be on hold during the holiday season.
It also revealed that the country’s current account and 2023 deficit are expected to narrow.
In terms of the USD-EGP recommendation, Deutsche Bank maintains its mid-year forecast of EGP 31; however, it revised up its year-end forecast to EGP 37 due to projections of a weaker currency in the second half (H2) of 2023.
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