The Clap
Economists expect the EGP to be devalued further during the coming period, descending to historical levels as preparation for the IMF loan Egypt requests, as per Sky News.
What Now
The EGP has witnessed a rapid decline in value recently, reaching EGP/USD 19.4. The EGP is ever so close to breaking the historical value it reached after its flotation in 2016 when it reached EGP/USD 19.51.
Due to the war between Russia and Ukraine, large amounts of foreign currency exited the market, forcing the EGP to lose 23% of its value since the beginning of 2022.
Why this Matters
Analysts expect the EGP will fall to levels of EGP/USD 21-22. Some analysts also say that a one-time decline is better than a gradual decline because a one-time decline will encourage investors to invest in the market.
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