On Saturday, Société Générale predicted that the value of the Egyptian pound would soon depreciate by about 10%. Egypt suffers from unprecedented inflation, which reached 31.2% last January. The country is likely to devalue its currency again shortly, according to a recent report by Société Générale. Therefore, the dollar may reach 34 Egyptian pounds at the end of March. The exchange rate of the US dollar today is 30.58 Egyptian pounds.
According to experts, heavily indebted Egypt will need a cheaper currency due to its large current account deficit and problematic currency shortage. Despite the Egyptian pound losing 50%, the local currency has yet to reach a balanced short-term exchange rate. Experts say that the Central Bank of Egypt’s lack of decisive monetary action raises questions about its commitment to implementing its pledges to the IMF. The Central Bank of Egypt needs to prioritize rebuilding its foreign exchange reserves. Egypt suffers from a shortage of hard currency, as foreign exchange reserves declined to $33.532 billion last November.