Tamer Youssef, head of treasury at a foreign bank operating in the Egyptian market, said that the exchange rate of the national currency against the US dollar will reach balance in the fourth quarter (Q4) of 2017. He added that the balance could be achieved in conjunction with continuing the economic reform programme, which would lower imports, control the balance of payments, increase foreign direct and indirect investment inflow to Egypt, ease market risks, and boost the Egyptian credit rating. He added that the switch from a fixed to a flexible exchange rate regime is expected to improve the competitiveness of Egypt’s exports, attract foreign investment, unlock private sector activity that has been hindered by the severe foreign exchange shortage, and increase the economy’s flexibility in response to external shocks. Egypt rose in the 2017 Ease of Doing Business Ranking by four places, taking rank 122 among 190 countries. Indeed, Egypt has become a more attractive destination, due to a sharp depreciation of the domestic currency since early November.

Source: Daily News Egypt January 21, 2017 17:20 UTC