Egypt: EGP hits lowest since March amid emerging market sell-off, increased USD demand

The Egyptian pound has fallen to its lowest value since devaluation in March, Bloomberg reported.

This drop was affected by a broad sell-off in emerging markets and higher local demand for US dollars.

Currently trading at approximately EGP 49.8 to USD, this marks the lowest since Egypt had allowed the pound to drop by nearly 40% earlier this year in an effort to attract foreign investment and alleviate its two-year economic crisis.

The depreciation occurs as the International Monetary Fund (IMF) and Egyptian officials discuss the government’s progress in meeting reform targets of an $8 billion loan package.

For his part, Egyptian Prime Minister Mostafa Madbouly depicted discussions this month in Cairo as “positive,” noting that the IMF’s fourth review of the country’s program would be completed in two days.

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