Egyptian pound to reach LE21/$ by end of 2022 with further fall to take place – Egypt Today

Egyptian pound to reach LE21/$ by end of 2022 with further fall to take place – Egypt Today

CAIRO - 1 August 2022: Capital Economics expected the Egyptian pound to fall 10 percent against the dollar to record 21 per dollar by the end of 2022. The economics company also anticipated a 16 percent decrease by the end of 2024 to record 25 per dollar. “We think policymakers need to stick to their shift to a more flexible exchange rate regime and allow the pound to weaken in order to correct external imbalances,” the company elaborated in a report. The report, which Egypt Today (ET) got a copy of, attributed the devaluation of the pound to the repercussions of the Russian-Ukrainian crisis which casted its shadow on Egypt which is a large net commodity importer. It also caused Egypt’s large current account deficit to widen during the year which in turn caused a struggle to attract stable forms of external financing, Consequently, “officials will need to stick to their shift to a flexible exchange rate in order to restore macroeconomic stability,” the report added. “Indeed, the current account deficit stood at 4.3 percent of GDP on a four-quarter sum basis in Q1 and, all else equal, the price effects from commodity prices this year are having a negative