Yuan Effect Chokes Egypt as Trades Signal Pound Peg Too High
- Black market for dollars returns to Cairo after four-month gap
- Cairo's dual-listed shares priced at 11% discount overseas
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Traders are convinced Egypt won’t resist the pressure to weaken the pound for long.
The black market for dollars on Cairo’s streets has re-emerged for the first time since April, signaling investors and businesses are betting the pound’s official rate of 7.83 per dollar no longer represents its true value. Forward contracts imply a 20 percent weakening in 12 months and the country’s foreign-listed shares trade at a 11 percent discount to local prices.