The Egyptian pound is trading at the lowest levels against the U.S. dollar in more than seven and a half years, with experts telling CNBC further downside can be expected in the coming months.
Egypt’s new president rejected the possibility of devaluation last week, leaving plenty of room for speculation as to where the local currency is headed.
Mohamed Morsi also said he would not impose new taxes and that his government would instead look at ways to stimulate investment and tourism.
His statement got additional support from reports on Tuesday that the U.S. government was close to agreeing on a $1 billion debt relief for Egypt.
The country is still muddling through its post-revolution transition and it would be the beginning of self-fulfilling prophecy if officials were to admit any plans to allow the Egyptian pound to depreciate.
Mubasher
