Morgan Stanley Bank announced that Egypt’s $35 billion deal with Abu Dhabi Developmental Holding (ADQ) paves the way for the country to adjust the EGP exchange rate, Asharq Business reported.

The bank believes that this will be the last step prior to concluding a deal with International Monetary Fund (IMF) on a financing program worth over $10 billion, likely before the holy month of Ramadan.

The bank expects the USD exchange rate against the EGP to continue to decrease in the parallel market over the coming week after the EGP 12-month non-deliverable forward (NDF) contracts declined to EGP 57.5 from EGP 62 per USD after announcing the deal.

In addition, that bank pointed out that the funds that will be received by Egypt for Ras El Hekma deal within two months are equivalent to foreign direct investment (FDI) flows into the country in three years and 9% of the gross domestic product (GDP).

 

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