Although Egypt’s constitutional crisis has eased, the currency is now presenting a fresh cause for concern. Our central view remains that Egypt will secure an IMF deal which, combined with a return of private capital inflows and official aid, should ensure that a full-blown currency crisis is avoided. For now, we think that the pound will undergo an “orderly” devaluation to around 7.5/$. But with numerous issues to iron out in the negotiations, particularly over subsidy reforms, this outcome is by no means certain.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services