Fitch said the improvement in Egypt’s external position reflects stronger financing of the current-account deficit through foreign direct investment and external borrowing.
In a recent report, the agency said the Egyptian pound has weakened by around 10% against the US dollar since late February, following the exit of more than $10 billion in foreign investments, without intervention from the Central Bank of Egypt to support the currency.
The rating agency attributed its affirmation to the country’s steady macroeconomic recovery, robust foreign reserves, and continued international support, balanced against persistent fiscal and external challenges.
In its latest report, Fitch emphasized that Egypt’s relatively large economy and strong growth potential continue to be supported by solid partnerships with both multilateral institutions and Gulf countries.
According to Fitch, the new U.S. administration's aggressive trade policies are driving inflation higher and delaying Federal Reserve rate cuts, creating a challenging environment for global markets.
