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A study by EFG-Hermes, one of the largest regional investment banks, predicted a depreciation of the pound against the dollar at around 19 pounds by the end of the year. year 2019, against 17.5 pounds currently, which suggests a further decline in the Egyptian currency, despite the increase recorded Recent.
In total, 520% of the 520 participants at the Dubai Individual Investment Conference said on Sunday that the dollar against the Egyptian pound would be around 18 pounds by the end of 2019. it expects 19% to reach 19 pounds sterling. While 7% of respondents believe that Egypt will reduce its currency to 20 pounds.
On November 3, 2016, the government issued the exchange rate of the pound sterling against foreign currencies under an agreement with the International Monetary Fund, in consideration for a $ 12 billion loan in the state.
The dollar jumped about 125% a few days after the liberalization of the exchange rate, after the US dollar approached the 20-pound level against 8.88 pounds before the government's decision, but the dollar price has declined slightly over the past two years to now settle at 17.5 pounds. The Egyptian currency is down 97% from its pre-float level.
According to Anatolia, EFG-Hermes immediately held a vote on the sidelines of the 15th annual investment conference. Hermes operates directly in seven regional markets in the Middle East and North Africa.
The investment bank "HC" early February, the rise of the dollar in Egypt to 19.6 pounds end 2019.
US investment bank Golden Man Sachs announced in a report earlier this month that the Egyptian pound would resume falling by 8% a year for three years.
The bank has identified a number of risks to the Egyptian economy and the Egyptian pound, including security risks and a slowdown in remittances, especially since 50% of them come from the Gulf countries, vulnerable slowdown due to the low price of oil.
Morgan Stanley, in a report published about two months ago, was expecting the pound to drop by about 10% this year.
A bank official of the "New Arab" said that the foreign exchange market was under the sign of a strong anticipation, after the decline of the dollar in recent weeks, pointing out that despite the increase in remittances Egyptians abroad, however, some have stopped converting their dollars and other currencies into pounds. While many have resorted to converting only a portion of remittances for living purposes.
He pointed out that some people are expecting further depreciation of the pound sterling over the coming period, especially since the state is heavily dependent on the continued borrowings for the supply of foreign currency. .
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