Deutsche Bank expects EGP to devalue by 20% soon

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Strategists Anna Friedman and Oliver Harvey also project a further currency weakness through the end of the year.

Staff Writer, Arab Finance

February 4, 2024

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Arab Finance: Strategists at Deutsche Bank forecast a 20% devaluation to the Egyptian pound in the short term, Asharq Business reported, citing a note from the lender.

Strategists Anna Friedman and Oliver Harvey also project a further currency weakness through the end of the year.

They see the exchange rate as a consequence and not a cause of the difficult situation in which Egypt finds itself.

The note added that constant exchange rate adjustments may be futile, especially when they do not reflect the fair value of the currency.

It is worth mentioning that the Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) pushed up the interest rates by 200 basis points (bps) at its first meeting in 2024.

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