IMF loan extension for Egypt could trigger EGP devaluation: Capital Economics

IMF loan extension for Egypt could trigger EGP devaluation: Capital Economics

Capital Economics is certain that any increase in the size of Egypt's $3 billion loan program with the International Monetary Fund (IMF) will be accompanied by a devaluation of the Egyptian pound, Al Arabiya reported.

The economic research firm also added that inflation in Egypt is slowing down; however, it will remain above the Central Bank of Egypt’s (CBE) target level until mid-2025.

In December, Bloomberg reported that Egypt was close to expanding its $3 billion loan program with the IMF to around $6 billion.

Meanwhile, US Treasury Secretary Janet Yellen pledged unwavering support for Egypt's economy and ongoing reforms.

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