Egyptian pound devaluation unlikely to meet government’s policy objectives: Goldman Sachs

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It added that the extent and timing of any EGP devaluation is strongly uncertain and is eventually a policy decision for the government

Staff Writer, Arab Finance

February 9, 2024

EGYPT FOREX

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Any further devaluation of the Egyptian pound under the targeted foreign exchange regime is unlikely to meet the policy objectives of the Egyptian government, Goldman Sachs said in a recent report.

It added that the extent and timing of any EGP devaluation is strongly uncertain and is eventually a policy decision for the government.

The investment bank believes that the Egyptian authorities will continue managing the official exchange rate in the predictable future, yet with more flexibility.

Furthermore, it thinks that the country needs further policy tightening and that the official sector shall secure sufficient foreign exchange liquidity before trying to unify the exchange rate through a devaluation.

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