Uncertain pressures could push EGP lower against USD: Standard Chartered

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The market is anticipating the EGP to be devalued again

Staff Writer, Arab Finance

February 21, 2023

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The Egyptian pound could fall to 33 or even 35 against the US dollar if potential sukuk issuance and the expected privatization flows from the GCC are delayed, Carla Slim, MENA Economist at Standard Chartered, told Bloomberg in an interview on February 17th.

The market is anticipating the EGP to be devalued again, and sentiment among investors “remains a little bit undecided”, she said.

However, based on the latest indicators Standard Chartered expects 2030 to be the year things stabilize for Egypt because of the currency and the external funding outlook, Slim added.

Hence, the projected decline in EGP against USD is most likely to occur before the conditions stabilize, according to the economist.

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