Egypt’s foreign-exchange position has held up through the first six months of the Hormuz crisis. Reserves rose to $57.2bn in August, up almost $8bn from a year earlier. March 2024 was the turning point, when Egypt increased interest rates, allowed the currency to float freely and secured a $35bn investment from the UAE (MEES, 8 March 2024).
Since then, headline inflation has steadily declined and is currently at 14.5%, while after a sharp initial devaluation, the pound has been relatively stable and ended the month at $1=E£50.3 (see chart). (CONTINUED - 687 WORDS)
