Citigroup Bank Predicts Delayed Currency Devaluation in Egypt
Expectations of Delayed Devaluation
CITIGROUP Bank had expected Egypt to delay its currency devaluation until at least September, amid expectations that tourism revenues and the sale of state assets would ease pressure on the economy.
Predictions of Dollar Exchange Rate
The bank indicated that by the end of December the dollar could reach 36 pounds, and next year it will rise to 37 pounds.
Need for External Financing
Egypt needs to attract more external financing to liquidate the backlog of foreign exchange orders from importers and other companies.
Foreign Direct Investment Transactions
Citigroup said that the flow of hard currency into Egypt should be through foreign direct investment transactions.
Conclusion
Overall, Citigroup Bank’s predictions and recommendations may have a significant impact on Egypt’s economy and its approach to attracting foreign investment.
