Egyptian pound to be devalued in September/October: Morgan Stanley

US investment bank Morgan Stanley anticipates that the Egyptian pound’s exchange rate against foreign currencies will further decline during September or October – around the time of the first and second reviews of the International Monetary Fund.

It also suggested several financing risks that Egypt would face soon.

Three threats

The first of these comes from Moody’s review of Egypt’s credit rating, expected to be issued by early August.

Back in May, Moody’s put Egypt’s ability to meet long-term obligations in foreign and local currency under review with the aim of downgrading its rating. Therefore, if the reduction occurs as expected it would mark the second drop this year after being reduced in February from B2 to B3.