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Egypt Independent: Senior 'Economist' analyst expects Egyptian pound value to rise by 14%

12 currencies from a total of 60 currencies in the world will rise against the dollar this year, the luckiest of which would be the Egyptian pound.
08.01.17 | Interesting article at Egypt Independent

Simon Baptist, the Global Chief Economist at The Economist Intelligence Unit, expected the value of the Egyptian pound to increase by 14 percent against the US dollar in 2017, after a sharp decline in its value during the last two months of 2016.

Baptist added in a newsletter issued by the unit, Friday, that 12 currencies from a total of 60 currencies in the world will rise against the dollar this year, the luckiest of which would be the Egyptian pound.

Baptist believes that there is a change in the dynamics of capital markets after Egypt's decision to float the currency in 2016, he said in the report, expecting the pound value to rise by 14 percent over the coming year.

The report predicted as well the Egyptian budget deficit to reach US$ 13.8 billion in 2017, compared to a deficit of US$16.4 billion in 2016. The remittances of Egyptian expatriates as well as better exchange rates for the pound are all factors that will encourage exports and reduce imports.

In light of the data of the fourth quarter of 2016, positive results are expected as a result of increasing the volume of remittances, improved investment inflows due to the currency floatation, the IMF loan that Egypt signed amounting to US$ 12 billion, and the World Bank loan.