Complex Made Simple

Egyptian pound set to fall 9% next year – poll

Economists have said Egypt's currency is expected to fall 9% to a historic low in the coming year, although some see a much bigger drop if the country's economic and political woes trigger a balance of payments crisis, Reuters has reported. "Anything could happen, but in our central scenario we still expect some form of devaluation to happen," according to Said Hirsh at Capital Economics. "In this case it is a gradual depreciation, perhaps over a two or three steps, until then." That kind of devaluation would keep the currency within the central bank's comfort zone and would not provoke significant inflationary pressures, he said.