Egypt Central Bank Sees Pound's Real Exchange Rate Appreciating
- Floating of the currency help boost Egypt’s competitiveness
- Inflationary pressures linked to floatation subsiding
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Egypt’s improved competitiveness after the Nov. 3 floating of the currency is unlikely to be negatively affected by an expected appreciation of the pound’s real effective exchange rate in the short term, the central bank said.
The expected gains in the pound’s REER, which measures the currency’s value compared to an average group of major currencies, will not "neutralize the substantial real depreciation" that took place in November and December, the regulator said in its first Monetary Policy Report issued Friday.