The parallel currency market is fading in Egypt?

In an interview with Al-Arabiya, Elite Financial Consulting board member Mohamed Kamal expected the Egyptian central bank to depreciate the Egyptian pound by about 15% against the dollar during its scheduled meeting this week.

Kamal added that the Central Bank’s Monetary Policy Committee is expected to approve a significant interest rate hike on Dec. 22.

He explained that the adoption by the Central Bank of Egypt of a flexible exchange rate, with the release of the first tranche of the IMF loan to Egypt, will contribute to the fading or disappearance of the parallel currency market.

He underlined that the agreement with the IMF is good, in as it contributes to attracting large estimated foreign and Arab investments to the Egyptian market in 14-18 billion dollars, subject to exchange rate stability.

Egypt was expected to witness the start of the influx of foreign investment in the first quarter of next year in Egypt and greater access to the Egyptian equity market.

A board member of Elite Financial Consulting Company said that Egypt’s main stock index has recorded successive increases of around 40% since last October 27, date in which IMF expert-level approval on the loan was announced in Egypt, and that corrective operations “in profit taking” are positive to continue the uptrend in Egypt.

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