Bloomberg: Countries in the region can learn from Egypt's success story in liberalizing the exchange rates
Bloomberg: Countries in the region can learn from Egypt's success story in liberalizing the exchange rates

Andrew Schultz, head of Africa's strategy and sales division, praised the success story of Egyptian economy and he said  that a number of countries in the region can learn from . 

Schultz added : Egypt is a very good example of what happens when countries give up currency management policy and adopt  Exchange rate liberalization policy.

 He said the high profit estimates reflect the reform the economy has been through and the improved image of investors towards Egypt, which has a population of 100 million.

 The report also hinted that higher earnings expectations make Egyptian stock prices more attractive to own compared to other emerging markets.

 The report revealed that Egyptian dividends rose to pre-liberalization rates.

 Three years after the move, Egyptian companies began to reap the benefits and profits rose to a record dollar.

 Estimates of future earnings also raised.

 Economists say the liberalization of the exchange rate is difficult in the short term but brings long-term gains, and Egypt is proof of this.

 The report pointed out that Egypt liberalized the exchange rate of the pound in November 2016 in order to ease the pressure on demand for the dollar.

 Inflation has accelerated dramatically, but today, inflation has fallen and has fallen consecutively. And its currently at a low level , Foreign currency reserves have increased and  Egyptian securities witnessed an increase of 62% compared to the lowest level in the period following the float.

 Expectations of economic growth of 5.6% for the current year.

 In addition, the Egyptian pound achieved its best annual performance since at least 1999, pushing dividends to a significant upward trend

Source : Almal and Bloomberg. 

YOUR REACTION?

Facebook Conversations