The Clap
According to analysts at Naeem Brokerage, the EGP is expected to decline a further 5% to reach EGP 29-30 per $1.
What
Naeem said that a more flexible FX rate is evidence that it received support from abroad before the decision. Deutsche Bank also added that the decision indicates the government’s plan to attract hard currency to the local market.
So What
According to Naeem, a fully flexible FX rate will generate foreign inflows of more than $15 billion in equity and debt investments by the end of 2023.
Now What
The government decided to float the EGP 3 times during 2022, to reach levels greater than EGP 27.
