Egyptian pound at highest against US dollar in 2 years
The local currency plunged around 50% after Egypt floated the currency in November 2016. The liberalization of the exchange rate regime and the devaluation of the EGP helped the country receive a three-year Extended Fund Facility (EFF) of around $12 billion from the International Monetary Fund (IMF).
As Egypt readies to exit the assistance program, economic data shows that the strict IMF-backed measures have paid off. According to the Emirates NBD Purchasing Managers’ Index (PMI), Egypt’s non-oil private sector expanded at the fastest pace since August 2015 and employment returned a reading above 50 for the first time since 2015 in April.
Bloomberg data also showed that the EGP has been the Middle East’s best-performing currency so far this year. Egypt’s currency currently trades at its highest levels in almost two years, indicating a gain over 6% against the greenback since the start of 2019.
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