Cairo – Mubasher: London-based Capital Economics expected the value of the Egyptian pound to fall slightly against the US dollar to EGP 19 from EGP 17.9 by the end of 2019.
Policymakers are working on simplifying exchange rate in the North African country, the economic research consultancy said in a recent report.
The report added that the Ministry of Finance (MoF) and the Central Bank of Egypt (CBE) are on the right track after cutting customs dollar exchange rate and cancelling the transfer of foreign investors’ cash, noting that the exchange rate policy is still complicated.
Decisions made by the MOF and the CBE were compliant with expectations that the central bank was pushing state-run lenders to support the Egyptian pound, according to the report.
This policy cannot last for a longer period and the next step might be limiting invisible interference in the exchange market, which will force the EGP to slash, the report pointed out.
Capital Economics projected that the CBE will resume its quantitative easing policy in early 2019 on the back of an expected decline in Egypt’s core inflation rate.
