USD may fall below 15LE in Q1 of 2020
© Shutterstock
The performance of different economic sectors, the overall standing of the Egyptian economy and the current standing of the Egyptian pound against the dollar all indicate that the dollar is to further drop.
By the end of 2019 the Dollar went under 16LE for the 1st time since the devaluation of the pound in 2016. There is no reason for the Dollar to rise against the pound, reported Al-Monitor.
The Egyptian pound is expected to strengthen in 2020 with returns from tourism, especially with the anticipated inauguration of the Grand Egyptian Museum, as well as exports and foreign investments in the country. Egypt’s foreign reserved reached over $45 billion at the end of 2019.
Meanwhile, Moody’s released a report praising the ‘strong pace’ by which Egypt’s economy is growing. The reported foresees a growth of private sector credit by 12-15% in 2020 especially in the light of low inflation and interest rates in Egypt currently.
Moody’s also put a high bet on the tourism sector that witnessed incredible growth in 2019 reaching up to 20% and is expected to break this record in 2020.