Tuesday 29 of November, 2022
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Egypt Has Gone From ‘Crisis Zone’ to ‘Investor Haven’ According to Bloomberg Report

According to a report published by Bloomberg, Egypt’s economic situation is finally getting somewhat of an upper-hand in the global economy.

Staff Writer

A recently released report by Bloomberg has given Egypt's well-documented economic struggles a light at the end of the tunnel, with the report stating that Egypt’s currency has been 'relatively immune' in comparison to its neighbouring countries.

If you’ve been following the news, you’ve probably heard here and there that there’s friction happening between Turkey’s Lira and Egypt’s Pound, due to the impact that the latter’s floatation had on the former’s currency value ever since the $12 billion IMF loan in 2016.

When the Egyptian Pound was floated in 2016, international investors increasingly became more interested in investment opportunities in Egypt; in correlation to that, interest in Turkey and Argentina has been dwindling, according to Bloomberg's report, "reeling [them] to record lows."

In addition, the couple of natural gas discoveries by Eni that have been made over the past two years have also perked the interest of oil and gas companies internationally, putting Egypt in the spotlight.

“Due to the relatively high yield and relatively stable currency, it will remain an interesting investment opportunity for emerging-market investors,” Sergey Dergachev from Union Investment said about Egypt.

Since the last floatation, bringing the dollar-rate up to EGP 17.93, Bloomberg says that the pound has been relatively stable, while the currencies of Argentina, Turkey, South Africa and Brazil have decreased significantly in the same time period.

Fitch Ratings had also forecast a positive outcome for Egypt’s economy, giving us a ‘B’ for Positive Outlook.

Main image from Business Recorder