Egyptian Pound to Remain Stable through the End of the Year
The EGP is unlikely to see any major fluctuations through the remainder of 2018 and potentially into 1H2019, Beltone Financial’s Director of Macro and Strategy Alia Mamdouh tells Bloomberg TV. High FX reserves and the narrowing inflation differential between Egypt and the US’ headline inflation rate, she said. Mamdouh took note of improvements in the supply side of foreign currency on the back of rebounding tourism, which has led to a healthier balance of payments and current account.
Interest rates are also likely to remain stable for the time being, particularly as emerging markets have been raising their rates to offset turbulent market conditions. Mamdouh doesn’t expect any cuts until 1Q2019.
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