The Egyptian Cabinet’s Information and Decision Support Center (IDSC) said that Fitch Solutions expected that the Egyptian pound would continue to trade within a narrow range in the short term, expecting that its value of would vary between EGP 15.50-15.80 against the dollar in the short term during 2021.
Fitch praised the success of the Central Bank of Egypt in creating foreign currency reserves and maintaining the stability of the exchange rate, which reflects the effectiveness of the Bank's proactive interventions.
The volume of Egypt’s foreign currency reserves in July amounted to about $40.6 billion, compared to $36 billion in May 2020.
Fitch also expected that remittances from workers abroad, the gradual recovery in tourism, and International Monetary Fund loans would contribute to providing the necessary support for the Egyptian pound.
Meanwhile, sources said that Egypt was considering appointing banks to advise on its financing strategy for the current fiscal year, which is expected to include the issuance of euro-denominated bonds.
Two sources familiar with the matter told Reuters that the government had issued a request for proposals from banks, which are due to respond by the end of this week. Finance Ministry officials did not immediately respond to Reuters’ request for comment.
Last year, the Egyptian government was the first in the Middle East and North Africa region to issue so-called green bonds, which are designed to support climate-related or environmentally friendly projects. The Finance Ministry also said earlier this week that it was planning to issue sukuk, or Islamic bonds, starting next year, as it seeks to diversify its funding base.
