The effects of the liberalisation of the Egyptian pound and the scrapping of fuel subsidies continue to be felt in the economy. For Egypt’s monetary sector, inflation continues to surge to an over eight-year high in December. According to FocusEconomics, the flotation of the Egyptian pound and the hike in regulated prices of subsidised fuel has led to a build-up of inflationary pressures. According to the IMF and the World Bank, the CBE must navigate the recent move to a more liberal exchange rate regime. The free-floating of the Egyptian pound in early November caused consumer prices to spike in the same month, which could call for further hikes.

Source: Daily News Egypt January 21, 2017 19:32 UTC