“Fitch” expects the stability of the value of the Egyptian pound
The Information and Decision Support Center of the Egyptian Cabinet showed Fitch Solutions’ expectations that the Egyptian pound will continue to trade within a narrow range in the short term, expecting that the value of the Egyptian pound will range between 15.50 and 15.80 pounds against the dollar in the short term during 2021.
Fitch praised the success of the Central Bank of Egypt in creating foreign currency reserves and maintaining the stability of the exchange rate. This reflects the effectiveness of the Bank’s proactive interventions. The volume of Egypt’s foreign currency reserves in July amounted to about 40.6 billion dollars initially, recovering after it recorded 36 billion dollars in May 2020.
Fitch also expected that remittances from workers abroad, the gradual recovery in tourism, and International Monetary Fund loans would contribute to providing the necessary support for the Egyptian pound. As the remittances flows of workers abroad witnessed a continuous increase of 10% throughout the period of the “Corona” outbreak in 2021-2020.
Meanwhile, sources said that Egypt is considering appointing banks to advise on its financing strategy for the current fiscal year, which is expected to include the issuance of euro-denominated bonds.
Two sources familiar with the matter told Reuters that the government had issued a request for proposals from banks, which are due to respond by the end of this week. Finance Ministry officials did not immediately respond to Reuters requests for comment.
The request to banks comes ahead of what could be busy months for emerging markets amid expectations of tightening policies by the Federal Reserve.
“It is generally expected that the Ministry of Finance will touch the market by the end of the year at least to extend the next maturity,” said a banker from Egypt, who asked not to be named. “From a market perspective, the sooner the better, as the cost of funding is going up on the back of the US tightening cycle earlier than expected,” he told Reuters. Egypt, one of the most heavily indebted countries in the Middle East, issued euro-denominated bonds in 2018 and 2019 and has $2.5 billion in bonds due in January next year.
Last year, the Egyptian government was the first in the Middle East and North Africa region to issue so-called green bonds, which are designed to support climate-related or environmentally friendly projects. The Finance Ministry also said this week that it also plans to issue sukuk from next year, as it seeks to diversify its funding base.
The International Monetary Fund expects Egypt to record a deficit of 7.5% of GDP this year and 6% next year, while the total government debt will decrease from 92.9% of GDP this year to 88.9% in 2022.
Fitch praised the success of the Central Bank of Egypt in creating foreign currency reserves and maintaining the stability of the exchange rate. This reflects the effectiveness of the Bank’s proactive interventions. The volume of Egypt’s foreign currency reserves in July amounted to about 40.6 billion dollars initially, recovering after it recorded 36 billion dollars in May 2020.
Fitch also expected that remittances from workers abroad, the gradual recovery in tourism, and International Monetary Fund loans would contribute to providing the necessary support for the Egyptian pound. As the remittances flows of workers abroad witnessed a continuous increase of 10% throughout the period of the “Corona” outbreak in 2021-2020.
Meanwhile, sources said that Egypt is considering appointing banks to advise on its financing strategy for the current fiscal year, which is expected to include the issuance of euro-denominated bonds.
Two sources familiar with the matter told Reuters that the government had issued a request for proposals from banks, which are due to respond by the end of this week. Finance Ministry officials did not immediately respond to Reuters requests for comment.
The request to banks comes ahead of what could be busy months for emerging markets amid expectations of tightening policies by the Federal Reserve.
“It is generally expected that the Ministry of Finance will touch the market by the end of the year at least to extend the next maturity,” said a banker from Egypt, who asked not to be named. “From a market perspective, the sooner the better, as the cost of funding is going up on the back of the US tightening cycle earlier than expected,” he told Reuters. Egypt, one of the most heavily indebted countries in the Middle East, issued euro-denominated bonds in 2018 and 2019 and has $2.5 billion in bonds due in January next year.
Last year, the Egyptian government was the first in the Middle East and North Africa region to issue so-called green bonds, which are designed to support climate-related or environmentally friendly projects. The Finance Ministry also said this week that it also plans to issue sukuk from next year, as it seeks to diversify its funding base.
The International Monetary Fund expects Egypt to record a deficit of 7.5% of GDP this year and 6% next year, while the total government debt will decrease from 92.9% of GDP this year to 88.9% in 2022.
These were the details of the news “Fitch” expects the stability of the value of the Egyptian pound for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
