The near-term outlook for Egypt is positive. There has been a turnaround in Egypt’s external vulnerabilities, with strengthening foreign exchange (FX) reserves accumulation, stated Deutsche Bank (DB) Markets Research in a recent special report. The Ministry of Finance has drafted an ambitious budget for 2017/2018 that is now under review by the parliament. Stubborn inflation may force the Central Bank of Egypt (CBE) to continue tightening, especially if the Egyptian pound underperforms. In addition, Egypt secured agreements on coal-fired and renewable plants, which are envisioned to strengthen the electricity generation infrastructure.

Source: Daily News Egypt June 11, 2017 10:01 UTC