![]() ![]() They anticipate the rate will ease into the teens in 2025, but only hit single digits by 2027. They forecast inflation reaching around 30.3% this year, down slightly from 33.9% in 2023. "In preparation for the successful implementation of these measures, sufficient funding has been secured to avail foreign exchange liquidity."Īnalysts at S&P Global Market Intelligence expect further monetary tightening in 2024 to combat inflation and offset the price increases stemming from Egypt's weakened pound. "The announced measures have been adopted as part of a set of comprehensive economic reforms in coordination with the Government, and backed by the steadfast support of multilateral and bilateral partners," the central bank said. "The domestic economy has been recently weighed down by foreign exchange shortages resulting in the existence of a parallel exchange rate market and constraining economic growth," Egypt's central bank said in a statement, following the meeting of its Special Monetary Policy Committee on Wednesday.Ĭairo has in previous instances pledged to let its currency trade more freely, but would still step in to control the pound when it fell. The country's moves suggest it is confident that hard currency inflows are on the horizon, particularly from an investment deal signed last month with the United Arab Emirates worth $35 billion and the expectation of an agreement with the IMF for further support. "This appears to be a positive step for Egypt on the path out of its current crisis," he wrote.Įgypt, the Arab world's most populous country at roughly 110 million people, is facing a protracted shortage of foreign currency. ![]() This is likely to pave the way for an IMF deal within hours," James Swanston, a Middle East and North Africa economist at London-based Capital Economics, wrote in a research note. The development "shows that policymakers are committed to the turn back toward economic orthodoxy. The country's key interest rate now stands at 27.25%, the central bank said Wednesday. The Egyptian pound was trading at roughly 50 to the dollar following the announcement, from 30.85 previously, according to LSEG data. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |