Fitch Ratings has revised the outlook on Egypt’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to Positive from Stable, while affirming the IDR at ‘B-‘. Additionally, Fitch believes exchange rate flexibility is likely to be more durable than previous efforts. FX Reserves to StrengthenFitch forecasts Egypt’s gross foreign exchange (FX) reserves will increase by $16.2bn in FY24 to USD49.7 billion. While an external shock could test authorities’ commitment, Fitch has greater confidence that exchange rate flexibility will be more durable. Debt Sustainability a Concern: Egypt’s very high debt interest costs remain a key vulnerability.

Source: Daily News Egypt May 04, 2024 05:21 UTC