The Egyptian market is gearing up to receive the largest foreign exchange inflows, amounting to approximately $50 billion. These inflows will enhance foreign exchange liquidity and reflects a very favorable and optimistic trend in terms of currency market stability, anonymous source familiar with the matter told Amwal Al Ghad English.
This FX liquidity includes $8 billion from the International Monetary Fund (IMF), $1.2 billion from the IMF Sustainability Facility, $20 billion from the remaining tranche of the Ras El Hekma deal, $8 billion from the European Union, $6 billion from the World Bank, and $6.5 billion from state asset sales through the end of the year. This is the highest foreign exchange influx to Egypt in the recent 10 years, he explained.
These FX inflows, combined with the Egyptian central bank’s measures to unify the exchange rate and currency flotation, will help meet the market’s demand for foreign exchange while also containing inflationary pressures, lowering inflation rates to single digits in the short term and driving down prices, he added.
This trend supports the government’s objective to offer internal sources of foreign exchange in the medium and long term, he concluded.
