Economic reforms give Egyptian pound flexibility, resistance against shocks: Hala El-Said

Economic reforms give Egyptian pound flexibility, resistance against shocks: Hala El-Said

She pointed to the Capital Economics report which anticipates pressures on the Egyptian pound to ease, after the country overcomes the demands created by its balance of payments.This is likely to occur as tourism, one of Egypt's most important generators of finance and foreign exchange, is heading towards recovery with the removal of restrictions related to the pandemic.According to the ministry report, Capital Economics explained that the Egyptian pound has witnessed a 2% appreciation against the US dollar since July. At the same time, the Central Bank of Egypt (CBE) has kept interest rates unchanged to encourage the flow of capital.The report expects an improvement in the local currency's performance against the US dollar in the next few years, compared to its pre-coronavirus levels in 2019, when the US dollar