Egyptian Pound Hover Around Record Lows

The Egyptian pound remained at historically low levels of around 30.9 per dollar, as investors assessed the possibility of a fourth devaluation before an important International Monetary Fund (IMF) review.

The currency has been significantly impacted by a shortage of US dollars since last year and surging inflation.

While the pound has been devalued three times since March 2022, which helped to secure a $3 billion deal with the IMF, the expected additional financing from Gulf Arab states has yet to materialize.

However, due to the expected devaluation of the pound in the coming months, potential buyers are hesitant to act, as they prefer a more favorable exchange rate.

Meanwhile, the IMF is waiting for Egypt to implement reforms, including a flexible currency system and privatization of state-owned assets, before carrying out the first review of the country’s program.