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.
Fitch noted that Egypt's banking sector demonstrated resilience during the previous monetary easing cycle, which spanned from 2018 to 2021.
