Will stronger Egyptian pound really lead to drop in prices?
Citizens are waiting to see if the Egyptian pound can sustain its comeback against the dollar.
Following the Egyptian government's devaluation of the pound in November, citizens and investors are waiting to see what will be next in terms of inflation and the country's business climate.
Six years after the January 25 Revolution, the country is facing a transition period to secure its economy. According to Trading Economics, “Egypt's consumer prices rose 28.1% year-on-year in January 2017, accelerating from a 23.3% increase in the previous month [December 2016]. It is the highest inflation rate since December 1989, mainly boosted by a 37.2% increase in cost of food and beverages.”
Egypt has many challenges — to increase its foreign reserves, lower inflation and decrease its imports, depending more on local products.
The country's foreign reserves rose to $26.5 million by the end of February, according to the Central Bank of Egypt (CBE). In February, Egypt received $4 billion in yields from Eurobonds, issued on the global bond market.
