The Clap
Egypt’s prime minister, Mostafa Madbouly, stated that the FX crunch will end soon.
What
Madbouly’s statement implies an upcoming devaluation of the EGP, which has undergone three devaluations since 2022.
So What
Ahmed ElHefnawi, Chief Technical Strategist at Thndr Securities Brokerage, told Claps that this statement compelled people to hedge against the upcoming devaluation by investing their money in the stock market and gold.
Egypt’s main index, EGX30 increased by 2.12%, reaching 24,899 points as of Sunday’s close price.
24-K gold local prices averaged at EGP 3,110 per gram, nearing the all-time high of EGP 3,200 per gram.
Some context
In related news, the International Monetary Fund’s (IMF) head told Reuters that the fund is considering a potential boost of Egypt’s USD 3 billion loan, amid Israel’s war on Gaza.
Egypt was reportedly eyeing a new IMF loan before the end of 2023.
