The American Investment Bank, Goldman Sachs, stated in a new research memo, that it is currently not appropriate to implement any further devaluation of the Egyptian Pound against the US Dollar, especially given the insufficient foreign liquidity held by Egyptian banks. The bank pointed out the resilience of the Egyptian Pound against the Dollar in the parallel market in recent days, reinforcing market participants' expectations of an imminent official devaluation of the Pound. First, the demand for foreign currencies should be proportionate to the expected incoming flows, regardless of the chosen foreign exchange rate in the medium term. However, the bank still believes that the demand for foreign currencies is high and inconsistent with the official exchange rate, which significantly lags behind the parallel market level. The Egyptian economy is grappling with a decline in foreign exchange reserves, leading to the adverse impact on the revenues of the Suez Canal.

Source: Egypt Today February 08, 2024 15:08 UTC