A state of uncertainty over the timing of the devaluation of Egyptian pound by the Central Bank of Egypt (CBE) pervaded the market Sunday, following the meeting held between President Abdel Fattah Al-Sisi, CBE governor Tarek Amer, and a number of senior state officials. Despite the growing expectations in local markets about the flotation or devaluation of the Egyptian pound within the coming days, a senior banker told Daily News Egypt that the state will not apply any devaluation of the Egyptian pound before 11 November so as to avoid any negative effects that would cause unrest in the streets. According to Youssef, the meeting held between the president, the CBE governor, and the state officials may be a prelude to the implementation of those procedures. He added that the government may cut energy subsidies within a few days, and then reduce the price of the Egyptian pound. He predicted that the CBE would increase the interest rate on the Egyptian pound by about 3% by the end of this year, to meet the expected increase in the inflation rate due to its devaluation.

Source: Daily News Egypt October 23, 2016 14:03 UTC