Bloomberg: Egyptian Pound Reaps Economic Reform Benefits

Inflation in Egypt, Africa’s third-biggest economy, slowed to single digits for the first time since the pound was floated in late 2016. It had rocketed as high as 33%.

Later, Egypt's administration explained that a devaluation was needed to ease severe shortages of foreign exchange and get a $12 billion loan from the International Monetary Fund.

Although the decision was painful for Egyptians, but portfolio flows into Egypt soared following the devaluation and the start of IMF-supported reforms, which included cutting subsidies that soaked up much of the budget and it got more foreign direct investment last year than anywhere in Africa, according to Bloomberg.

Inflation in Egypt fell below 10 %

Noteworthy, Egyptian stocks have fallen along with others in emerging markets since April, but they’re still up 13% year-to-date. That’s partly down to the pound appreciating 8% against the greenback a performance bettered only by the Russian ruble.

According tp UN's reports, Egypt will expand 5.5% in 2019, more than twice among Middle Eastern nations, according to analysts Bloomberg surveys.