Cairo – Mubasher: Chief economic advisor at Allianz Mohamed El-Erian expected the Egyptian pound to decline against the US dollar after the correction the exchange rate is witnessing.
El-Erian said on his Facebook account that he is not convinced of the report published in the Financial Times on Tuesday, which implied that the EGP's recent surge was the strongest by an emerging market currency in at least five years.
El-Erian suggested that the surge in the EGP/USD exchange rate by 14% will lead to concerns about a potential fall.
Allianz's chief economic advisor believes that the currency is not the main issue nor the solution to the economic challenges Egypt is facing, noting that economic reforms and the focus on social sectors are the key to achieve protection for the poorest segments.
