Mohamed Maait, the Minister of Finance, welcomed Moody’s global credit rating agency’s decision to upgrade its outlook on the future of the Egyptian economy from negative to positive. He said that this paves the way for enhancing Egypt’s credit rating shortly from this institution, which is one of the most influential globally in this field. Moody’s also expects that transferring part of the UAE deposits in Egypt to foreign direct investment, amounting to $11bn will improve the situation of the banking sector in Egypt. In the meantime, the foreign currency shortage will ease and improve due to the anticipated inflows of foreign currency in the Egyptian economy, whether through remittances, direct investments, or indirect investments in financial portfolios. Moody’s also observed that negative risks have significantly diminished, as large investments in the Ras El Hekma project will bolster Egypt’s foreign exchange reserves to cover the external financing gap until the fiscal year ending in June 2026.

Source: Daily News Egypt March 10, 2024 18:20 UTC