Banks can’t prop up the Egyptian pound for much longer

The Egyptian authorities appear to have leaned on state-owned banks to sell FX assets to offset pressure on the pound recently, but this can only be sustained for a few more months at most. The central bank could decide to intervene directly to support the currency but it would quickly be rebuked by the IMF. The upshot is that we expect that the pound will weaken over the next couple of years.

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