IMF loan extension for Egypt could trigger EGP devaluation: Capital Economics
- Date: 11-Jan-2024
- Source: Zawya
- Sector:Financial Services
- Country:Egypt
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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