Why Fitch's Revision of Egypt's Outlook to Positive Matters?

The credit rating agency indicated that its decision came against the backdrop of a “significantly reduced risk of external financing in the near term” due to the Ras al-Hekma project with the Emirates, the transition to a flexible exchange rate policy, tightening monetary policy, as well as additional financing from international financial institutions and the return of non-profit flows. Residents to the local debt market.

Fitch, the global credit rating agency, expected Egypt's total foreign exchange reserves to rise by $16.2 billion in the current fiscal year, which ends next June, to reach $49.7 billion, thanks to the abundance of foreign exchange resources and promises of confidence in the pound after the sustainable liberalization of the exchange rate.

At the same time, the agency expected in its report on Egypt that foreign exchange reserves would continue to rise further to record $53.3 billion by the fiscal year 2024-2025 - which begins next July - covering the equivalent of 5.6 months of current external payments, which is higher than “B” average of 4.1 months.