The Egyptian pound is expected to further weaken against the US dollar, to reach EGP 8 by the end of June, if not at a faster and more pronounced pace of depreciation, Emirates NBD said in its latest report.
On Thursday, the exchange rate, announced by the Central Bank of Egypt, was EGP 7.42. Exchange rate for the dollar at the National Bank of Egypt and Banque Misr was EGP 7.43.
During the past week, the value of the dollar against the Egyptian pound climbed up from EGP 7.14 to EGP 7.19, then further up to reach EGP 7.34 and to settle at EGP 7.42 on Thursday.
Discussing the Egyptian economy, the report stated that the investments outside the hydrocarbon sector are anticipated to pick up. It added that “the confidence in the economy’s long-term potential is also returning”.
“We expect fixed investments to be a major driver of growth this year,” the report said.
The Emirates NBD bank highlighted that investment in the petroleum sector will be critical “if Egypt is to reverse its declining hydrocarbon production”.