Cairo – Mubasher: MubasherTrade Research reported that there are two questions that will determine the developments of the exchange rate in Egypt, after the Central Bank of Egypt's (CBE) decision on Thursday.
The CBE decided on Thursday floating the Egyptian pound freely and raising the EGP interest rates across the board by 300 base points (bps), which MubasherTrade saw to be broadly in line with market expectations.
The first question was: "Will there be enough liquidity in the banking system for investors to trade the US dollar freely?"
The research firm saw that the ‘availability’ of US dollars in the banking system will now depend on investors’ confidence.
The report showed that the second question is related to the timing during which the Egyptian government will start implementing the recently-approved decisions by the Higher Council for Investment.
MubasherTrade said that timing is essential for the economic reform operation of Egypt.
The Higher Council for Investment, led by Egypt's president Abdel Fatah Al Sisi, has taken 17 decisions supporting the investments in Egypt during its meeting on Tuesday.
