Al-Marsad newspaper: British bank HSBC expects the Egyptian pound to decline by 25% against the US dollar.
HSBC Bank believed that the price of the Egyptian pound would approach its price in the parallel market that prevailed for most of the last quarter of this year, i.e. approximately 38 to 39 pounds per dollar.
It is also expected that this decline in the value of the pound will be accompanied by raising interest rates to support the foreign exchange system and prevent inflation that may result from the decline of the Egyptian currency.
These expectations from HSBC come after Moody’s downgraded Egypt’s rating, and this coincided with Kristalina Georgieva, Director of the International Monetary Fund, calling on Cairo to take decisive steps and develop a road map before Egypt’s foreign reserves are exhausted, indicating the necessity of reducing the value of the pound. And liberalization of the exchange rate.
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