The Egyptian pound: one year on from the float

Tomorrow will mark one year since Egypt’s central bank announced that it would move to a floating exchange rate. As we explain in this Watch, a weaker pound has yet to support a major improvement in the current account position and the recent surge in capital inflows is starting to ease. On a more positive note, some sectors have benefitted from a relaxation of FX restrictions, while inflation has now passed its peak and looks set to fall sharply.